Dáil debates
Tuesday, 5 February 2019
Saincheisteanna Tráthúla - Topical Issue Debate
VAT Rate Application
6:40 pm
Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source
I welcome what the Minister of State has said and will concentrate on his last paragraph. He has said the Minister for Finance understands the concerns of the industry on the matter, as well as the concerns of the public and those who consume these products weekly and daily. It is welcome that he has agreed to put in place a process that will ensure the 2019 tax strategy group paper will examine some of the policy choices in the VAT treatment of food supplements. Does the Minister intend to delay the introduction of VAT from 1 March unless the tax strategy group reports in the interim? It is important that the Minister reconsider a decision to commence the increase on food additives from 1 March. It would genuinely, truthfully and honestly help many people, including those people who come into my office and that of the Minister of State. Are we to tell them that they will have to pay it? They may say their health is bad or that they have a problem with arthritis. It means a great deal to people that their disposable income has been preserved. It is particularly important for pensioners not have to pay the additional increase in VAT. The experience in other countries such as the United Kingdom and the unregulated access on the Internet to products that are not defined raise questions. Such products could very well harm the individuals concerned or certainly do them no good. Obviously, that is not what we want to see happen. Therefore, I urge the Minister of State to take on board the views of the people who talk to him and me. The tax strategy group paper should be published and the Minister should decide on how he intends to act before he introduces this high VAT rate.
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