Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 138: To ask the Minister for Finance his views on zero rating VAT on road safety products; and if he will make a statement on the matter. [38957/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. 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.

It is therefore not possible under EU law to apply a zero VAT rate to the provision of road safety products.