Bernard Durkan (Kildare North, Fine Gael)
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Question 223: To ask the Minister for Finance the extra revenue expected by way of VAT returns arising from recent gas and electricity price increases in a full year; and if he will make a statement on the matter. [39559/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the information to be furnished on VAT returns does not require the yield from particular sectors of trade to be identified. It is, therefore, not possible to identify what portion of the net VAT received relates to sales of electricity or gas to domestic households.

However, based on statistical data derived from non-Revenue sources, the estimated additional revenue that could accrue to the Exchequer in a full year in terms of VAT arising from the recent increase in gas prices, if maintained, is €28 million, and the corresponding increase in the case of electricity is €34 million. This would include VAT from unregistered and exempt businesses as well as domestic consumers.

It should be noted that the VAT content of purchases of gas and electricity are deductible credits for business in the Irish VAT system.

It should also be noted that in response to these energy price increases, the Government has taken steps to improve the social welfare Household Benefits Package scheme by increasing the amount of electricity or gas entitlements covered under the scheme. This will benefit over 340,000 social welfare recipients and cost almost €50 million per annum.

Bernard Durkan (Kildare North, Fine Gael)
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Question 224: To ask the Minister for Finance the expected revenue accruing from VAT on gas and electricity at the end of 2006 as compared with year ending 31 December 1997; and if he will make a statement on the matter. [39560/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the information to be furnished on VAT returns does not require the yield from particular sectors of trade to be identified. It is, therefore, not possible to identify what portion of the net VAT received relates to sales of electricity or gas to domestic households.

However, based on statistical data derived from non-Revenue sources, the expected revenue accruing from VAT on gas and electricity at the end of 2006 as compared with year ending 31 December 1997 is as set out in the following table:

The aforementioned figures would include VAT from unregistered and exempt businesses as well as domestic consumers.

It should also be noted that the VAT content of purchases of gas and electricity is a deductible credit for business in the Irish VAT system.

The increase in the estimated amount of VAT received from gas and electricity arises in part from increases in fuel prices but also from the very strong growth in the economy over the period in question. Fuel prices, including those of gas and electricity, are driven by a number of factors including the price of oil on international markets, exchange rates, production costs and refining costs. The rise in oil prices over recent periods reflected additional factors such as geopolitical uncertainty, supply disruptions and strong economic growth in countries such as China.