Róisín Shortall (Dublin North West, Social Democrats)
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67. To ask the Minister for Finance if he will waive the 23% VAT rate on antigen tests; and if he will make a statement on the matter. [3332/23]

Róisín Shortall (Dublin North West, Social Democrats)
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This question has been overtaken by events. I welcome the announcement last Saturday by the Minister that he intends to waive the 23% VAT on antigen tests. I would like more detail on that from the Minister in respect of the timeline for the legislation. I note he has introduced it on an administrative basis. For what length of time does he expect the waiver to be in place?

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy. I will put the initial reply on the record because it deals with some of the issues.

As the Deputy will be aware, VAT on supplies of Covid-19 testing kits were subject to a temporary zero rate until 31 December 2022 as the result of an EU Commission derogation. While recognising the success of the Government’s vaccination programme, I have decided that Covid-19 test kits should be subject to a zero rate of VAT on an ongoing basis. This is because there are still significant levels of this virus in general circulation. My decision is reinforced by the public health guidelines which continue to advise caution, in particular recommending self-isolation if one has symptoms of Covid-19 and recommending Covid testing for certain vulnerable groups.

I propose that the zero rating of Covid-19 testing kits will be put on a legislative basis at the first available legislative opportunity; in the meantime, the Revenue Commissioners have agreed to operate it with effect from 1 January 2023 on an administrative basis. To answer the Deputy’s question, I will legislate for it with the agreement of the House at the first opportunity in the coming weeks or short number of months, whenever that opportunity arises, to make sure it is properly underpinned legislatively. I will not put an end date on it, so the zero rate is effective and will continue until we decide otherwise but I do not anticipate that will be the case.

Róisín Shortall (Dublin North West, Social Democrats)
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Does the Minister expect to legislate in a stand-alone Bill or is he waiting for another finance Bill of some description?

Michael McGrath (Cork South Central, Fianna Fail)
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We will add it to another Bill at the first opportunity.