Pat Carey (Dublin North West, Fianna Fail)
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Question 273: To ask the Minister for Finance the basis on which VAT is charged on the standing charges for such utilities as electricity and gas; if it is open to him to vary the level of VAT charged on these utilities; and if he will make a statement on the matter. [35142/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that application of VAT to goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The method through which VAT must be calculated has been transposed under section 10 of the Value Added Tax Act 1972 (as amended) on the following basis; ". . . the total consideration which the person supplying goods or services becomes entitled to receive in respect of or in relation to such supply of goods or services, including all taxes, commissions, costs and charges whatsoever, but not including value-added tax chargeable in respect of the supply". Any standing charges included in utility bills are therefore legally subject to VAT.

In relation to the scope under EU law for Member States to vary the rate of VAT applied to utilities such as gas and electricity, the position is that under the Sixth VAT Directive Member States may retain the zero rates on goods and services, which have been in place since 1 January 1991, but cannot extend the zero rate to other goods and services. The supply of fuel and energy products used for home heating and light are already subject to the reduced VAT rate of 13.5% under Article 28 (2e) of the Sixth VAT Directive. This means that Member States had the option of maintaining, at a reduced rate of not less than 12%, any items not listed in Annex H of the Sixth VAT Directive, provided these items carried a reduced rate on 1 January 1991. Ireland is one of only eight Member States that apply a reduced or parked rate to the supply of fuel and energy products used for home heating and light. In Ireland the parked VAT rate equates to our reduced rate of 13.5%. Telecommunications are subject to the Standard VAT rate which in Ireland is 21%.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 274: To ask the Minister for Finance the excise and VAT on unleaded petrol in 1997 and 1998. [35156/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The excise and VAT on a litre of unleaded petrol in 1997 and 1998 are as set out below.

The 1997 price is the national average price quoted by the CSO for November 1997; the 1998 price is that referred to by the Deputy in a footnote to the Question.