Catherine Murphy (Kildare North, Independent)
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Question 92: To ask the Minister for Health and Children the efforts which have been made to overcome the problem of VAT being charged by commercial suppliers of home care packages; if persons who have had to pay VAT will be refunded; if the VAT collected will be added to the €150 million home care package fund; and if she will make a statement on the matter. [35193/06]

Seán Power (Kildare South, Fianna Fail)
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My Department is currently examining, in consultation with the HSE, the Department of Finance and the Revenue Commissioners, the scope within the relevant EU directives to exempt the provision of homecare services by commercial suppliers from VAT.

In relation to VAT already paid, the Department of Finance has advised that non taxable persons cannot recover VAT incurred on goods and services that they purchase. Essentially only VAT-registered businesses which charge VAT are able to recover VAT.

In line with normal practice, all VAT revenues are applied by the Exchequer for the common good, as determined by the Oireachtas. Earmarking particular taxes reduces the discretion of Government and the Oireachtas in determining the priority areas in which public money should be spent.