Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

On the 9% VAT rate, I heard the comments about not looking at it in its totality. I argued that earlier in terms of hotel beds. Ms O'Brien commented that perhaps we could consider not going directly from 9% to 13.5%. That is interesting because my understanding is that this is not possible. Under the EU VAT directive we only have two reduced VAT rates which are 13.5% and 9%. There is no option to have further reduced VAT rates. The other reduced VAT rates we had - zero, 4.5% or 5.4% - were historical so we could have them because they were in place before 1991. There has been comment in the media and the Minister has been flying kites about it possibly going up to 10%, but it is my understanding that this is not possible. It is either 9% or 13.5%. Is my understanding wrong and is it possible to increase incrementally one of the two lower VAT rates that are permitted under the directive?