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Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: He referred to them in the context of VAT rates.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: Deputies asked the reason the VAT reduction will not kick in until 1 January 2010 given that last year's increase took effect on 1 December. I am informed that last year's increase was announced in the October budget to kick in on 1 December. Therefore, there was a fair gap between the announcement and the actual implementation.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: It takes some time for people to get their affairs in order and their systems in place, etc.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: In any case the retail sector will need it a good deal more in January than now.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: I refer to another question raised.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: We gave five or six weeks' notice. In this case people will only get three weeks notice which is not unreasonable.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: I refer to the question of why the VAT rate was increased last year.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: It was done as a revenue raising measure. If one examined the cost of decreasing it, even by a half a percent, it would be €140 million in 2010 and €167 million in a full year.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: Although Fine Gael maintain it does not believe in any taxes-----

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: -----and that every tax should be reduced, it promised a budget to find €2,300 million but only came up with €15 million.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: It has only €2,885 million to go.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: I have read it, my God have I read it.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: I refer to the lower rate of VAT. I understood in parliamentary debate-----

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: -----Members spoke uninterrupted from other side and Members were supposed to be able to reply from this side also without interruption.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: He does not have any interest.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: I refer to the proposed reduction from 13.5% to 10%. It would have cost €880 million. That would have been the revenue lost.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: Some €880 million of a temporary nature for how long? For one year.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: That represents €880 million in one year.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: Some €880 million is the official figure. That is what the Fine Gael amendment would have cost the State.

Financial Resolution No. 3: Value-Added Tax (9 Dec 2009)

Willie O'Dea: Admittedly, as Deputy Varadkar and others have stated, there are some labour intensive activities to which the 13.5% rate applies but there are other activities.

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