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

To take a step back, what is at issue is that we have a part of the economy which is arguing that no tax should be levied on the products it sells. I am faced with such claims every day as Minister for Finance. There are many politicians in the Chamber today who are very experienced in these matters and often suspicious of such claims when they are put forward for other parts of the economy. To reiterate, arguments have been laid in front of me by those involved in a particular part of the economy who are of the view that the products they sell should not be subject to VAT.

I had to take the investigation of that issue very seriously, something I have done and I am confident that this is the right measure to take. I am confident that a rate of 13.5% is getting the balance right between a tax being paid and having a tax that is sensitive to the different issues raised with me about the ability of people to afford these products and the effect they have on their well-being.

On the earlier issue raised with me by Deputy Michael McGrath about the retrospectivity of this measure, I would like to make some further material available on it. I emphasise that pursuit for non-compliance is always a matter for the Revenue Commissioners, but they will not pursue traders that applied the zero rate in accordance with accepted practice. However, those that were advised that specific products were liable to VAT at the 23% rate are and were expected to comply with that advice, but that is a matter for the Revenue Commissioners.

On the points made by Deputy Boyd Barrett, given that he has read the biography of Bob Marley, he will know that when he performed his concerts in Ireland, they were performed in Dalymount Park in Dublin Central. Perhaps, therefore, he had the experience outlined in the shops of Cabra and Phibsborough.

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