Dáil debates

Tuesday, 26 February 2019

Ceisteanna - Questions

Cabinet Committee Meetings

4:15 pm

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

Have any of the Cabinet sub-committees discussed the issue of the plan to impose a VAT rate of 23% on food supplements? That plan led people to protest outside the Dáil again this morning. Deputy Gino Kenny and I challenged the Minister on this issue a couple of weeks ago. The response was that it was nothing to do with the Government. It was an issue for the Revenue Commissioners. I suggest to the Taoiseach that is nonsense. An EU directive states that food supplements are food. The Revenue has, however, now made a distinction between food and food supplements. After years of applying a 0% VAT rate, it has decided to lash a rate of 23% on those supplements. That will put many people out of business. It will also ensure that those supplements, which the EU considers as food and which are very important for the health of ordinary people, will now be out of the reach of many people.

It is important to state that less well-off people will be hit hardest by this. Rich people will be able to absorb a 23% increase and still buy their supplements. Less well-off people will not be able to access these supplements. The Government is standing back as if to say that this has nothing to do with it. Actually, it does have something to do with it. This is about people's health and about fairness. This is a frankly fairly bizarre interpretation on the part of Revenue. There is a clear directive from Europe stating that food supplements are food. As a result, they should not be the subject of this 23% increase.

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