Victor Boyhan (Independent) | Oireachtas source

I welcome the Minister of State, Deputy D'Arcy, to the House yet again. The issue I raise is the change to the zero rate of VAT for vitamins and minerals. I acknowledge that the Minister for Finance clearly articulated the view that these are matters for the Revenue Commissioners in the first instance, rather than his Department or the Department of Health. I appeal to the Minister of State to have this matter reviewed on a number of grounds, one of which relates to health. It does not make sense to charge a VAT rate of 13.5% on fast food, such as burgers, chips and other greasy foods, particularly in the context of the national health strategy, when the Revenue is prepared to impose a VAT rate of 23% on health supplements from next month onwards. I noted the Taoiseach's statement in the Lower House - I checked the record today - that he was not in a position to confirm the higher rate would apply to iron supplements or folic acid but he would revert to the House on the matter.

I spoke to a number of general practitioners when researching this issue. My GP prescribes vitamin B12, folic acid and fish oils to patients. There are issues in this regard. I am not suggesting this for the benefit of those who are popping vitamins every day of the week. That is not right. However, GPs tell me they are prescribing these vitamins and mineral supplements - let us not call them drugs - on which Revenue will charge VAT. One must ask what the Government can do about it. I presume there it may be possible to address the matter in a finance Bill or other legislation. Maybe we should distinguish between cases where vitamins are prescribed and those where they are not prescribed. I would generally like these vitamins to be zero rated for VAT, as has been the case since 1972. I ask the Minister of State to consider with his colleagues whether we can set up a consultation process to engage on this matter with stakeholders.

As someone who lives near Gorey, the Minister of State will know how important our provincial towns area. Supplement and health shops, in particular in rural communities, rely on this legitimate and legal business. We need to support them against the major multiples in the cities. This decision raises many issues for rural communities and rural traders. More important, there is substantial employment associated with the supplements industry and we need to be careful how we impact on that.