Oireachtas Joint and Select Committees

Thursday, 21 February 2019

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Estimates for Public Services 2019
Vote 11 - Public Expenditure and Reform (Revised)
Vote 12 - Superannuation and Retired Allowances (Revised)
Vote 14 - State Laboratory (Revised)
Vote 15 - Secret Service (Revised)
Vote 17 - Public Appointments Service (Revised)
Vote 18 - National Shared Services Office (Revised)
Vote 19 - Office of the Ombudsman (Revised)
Vote 39 - Office of Government Procurement (Revised)

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

We are now evaluating the further proposal which was put to us by the industry. In particular we are evaluating whether it is consistent with EU VAT directives. We have received a proposal and it is being looked at as we speak. Only this week my officials in this area met a company that has been one of the lead voices on the issue. Work in this area is further advanced in terms of the tax strategy group process. That is in line with the commitments I gave to this committee. As to whether I would be able to make a statement in advance of the tax strategy group papers, it will depend on the work we do and on whether we can establish if there is a different way to deal with this issue. I am aware of further closures that took place in January, but I have not established whether there is a link between the closure of those businesses, which is of course regrettable, and the introduction of this levy given the fact that across all of last year, and in previous years, we have the seen the closure of many independent bookmakers. I have to establish if there is a link. We are further advanced on this issue than on other matters in the tax strategy group world. Will I make a statement on it in advance of the tax strategy group papers? It depends on whether the work we are doing at the moment yields a scenario we believe can work.

I will not be flippant in dealing with this matter because we are talking about people's livelihoods and family businesses, but I want to briefly make a point which I made to the Deputy during debate on the Finance Bill. Every time I go to consider a tax change, I am warned that it will have very negative consequences for every sector it affects. If I was to listen to all of those warnings all of the time, I would never be able to make a tax change. I am not being flippant, because I appreciate that these are independent small businesses. That is why we are doing work in this area more quickly than in any other area of the tax code.

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