Finian McGrath (Dublin North Central, Independent)
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Question 189: To ask the Minister for Finance if he will consider reducing VAT on heating oil in order to assist families; and if he will make a statement on the matter. [17008/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that heating oil is already subject to the reduced VAT rate of 13.5% and I do not have plans to change that. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The VAT treatment of heating oil is based on the fact that, on 1 January 1991, it was taxed at the reduced rate. Under EU law member states can continue to apply reduced rates in such cases only where they were applied prior to that date. The rate may not in any event be set below 12%.