Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

It is important to clarify that foods for specific groups, such as infant follow-on formula and infant foods, foods for special medical purposes and specially formulated foods will continue to be zero-rated. Foods that were correctly zero-rated in the early 1990s will remain at 0% VAT. Folic acid, vitamin and mineral products for human oral use, which are licensed by the Health Products Regulatory Authority, HPRA, will continue to be zero-rated under a different VAT provision for human oral medicines. The report the Senator is seeking will simply reiterate these points, about which we have spoken on a number of occasions. When Revenue made the decision to increase the VAT rate last March, many people told me that 23% was the wrong amount, but that 13% was an acceptable position. When the rate was subsequently changed to 13.5%, others said that was the wrong weight. However, I think it is the appropriate weight. This change brings clarity to VAT rates in the sector and brings the matter to a conclusion.