Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Deputy is aware that VAT is quite a complicated tax. It derives not just from the EU VAT directive but also from national legislation. There are different VAT rates for different foods, for example, fresh foods which are, of course, the healthiest to eat. There is also a zero VAT rate for oral medicines, but VAT is applied to injectable medicines because there is value added. VAT is also applied to processed foods. It is a Revenue interpretation in deciding the appropriate rate to be applied in different circumstances. It is not a political decision, or a decision of the Government or the Houses of the Oireachtas. It was not part of the Finance Act 2018 or the budget. It is a Revenue decision and it is for Revenue to interpret the rules and laws appropriately. The Minister for Finance has made contact with Revenue to see what can be done, but it would not be appropriate for him to direct the Revenue Commissioners on the rate they should apply to different products.

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