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

Regarding Exchequer returns, I acknowledge that VAT receipts for the first quarter - in fairness to Deputy Nash, he used the base of 2019 as opposed to that of 2020 or 2021 - are strong. However, I would make the case that if we look at where we are with excise, we can see it is down. Excise is down for a number of reasons. The first is that we have cut the rate of excise, therefore, we would expect to see excise tax receipts fall. However, we have some concerns that this is the first tax head that is being affected by consumption within our economy beginning to change as the price of something goes up. While Deputy Nash is not suggesting that the outlook in our public finances for the rest of the year is rosy, I still want to make the point that if we accept, and I do, that living standards are under pressure and many are facing real struggles, that is not consistent with tax collection or tax receipts across this year getting better as the year goes on. I expect that as we move through the year, we will face challenges with regard to additional costs to which we must respond. Next week, we will publish the stability programme update that will outline our best thinking regarding where we are with tax collection and growth for 2022. There is no more flexibility available to me than when I announced the set of measures contained in the Finance Bill a few weeks ago. In the ECOFIN meeting yesterday, I raised the case for flexibility for clarification regarding what is possible both under this and future VAT directives and that is being considered by the Commission. I expect it will be some time before I get an answer and can understand whether that answer will be of help. I have no further VAT flexibility available to me now than when I announced the measures contained in this Bill.