Paschal Donohoe (Dublin Central, Fine Gael)
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There are opportunities to make adjustments to our VAT code now on foot of the new directive implemented by the EU before the summer. I used some of that flexibility earlier this year to lower VAT on electricity. There is also additional flexibility in VAT on some forms of equipment and investment. As such, the point is a fair one. What I now need to do is try to reconcile some ideas that could be attractive with our ability to fund the overall package.

The Chair made an important point about indexation. Indexation also applies to taxpayers, mainly those who earn a normal wage and do not qualify for the social welfare supports that we have discussed. They are in work and need universal payments but also need the money in their wallets to go a bit further right now. Reconciling the cost of trying to do that with greening the VAT code is difficult. The Chair is correct, though, as there are opportunities now that were not available a year ago.