Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

What is happening at the moment is that at least some retailers are making a decision on what they believe the VAT rate should be on the sale of certain supplements. This is mainly within the area of vitamins, minerals and fish oils. The position in this regard is not clear. The Revenue guidance to date has been that there is a concession in place but due to the implementation and other issues, Revenue will now have to review the guidance in place.

I know the Revenue is aware of the issues raised. The challenge we now have is that we find ourselves receiving representations from manufacturers and retailers, some of whom believe they are correctly implementing the law. We have to ensure we have a level playing field. I want to be crystal clear on this point and I realise the Deputy is not challenging this. This is one of the areas in which I have to support the work being done by the Revenue. It will issue guidance in this area based on its interpretation of the law and this will have my full support. I will work in parallel with that but it is the right of Revenue to issue guidance before my work potentially concludes. If Revenue does that, I will support it and issue a paper on some of the broader policy issues. If the Revenue advises me of issues that I need to clarify to help with the implementation of law, I will be guided by that advice on the matter. Above all, I want to see a level playing field for retail products. I want to see clarity regarding how the law is being implemented. A growing body of evidence is being presented to me to the effect that this is not the case in the sector.

I was concerned that if I made a legislative change at this point, it could compound difficulties that exist. The Revenue will decide how this needs to be implemented. It will issue further guidance in this area, which I will fully support. While Revenue is looking at this, I will review our policy in the area and the question of whether we need to make changes in next year's finance Bill. Everyone needs to know where they stand, including manufacturers, retailers and consumers. When this clarity is available everyone will have to implement the same law in the same way. That is not happening at the moment and we need to address it.