Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 229: To ask the Minister for Finance his views on proposals to lower or remove VAT on condoms. [40119/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The standard VAT rate of 21% applies to condoms. Under EU VAT law, with which Irish law must comply, it is not possible to introduce new zero rates of VAT, as we can only retain the zero rating that was in existence on 1 January 1991. Therefore it would not be possible to apply the zero rate of VAT to condoms. However, Member States are permitted to apply the reduced VAT rate to goods or services listed in Annex H of the EU Sixth VAT Directive. In Ireland the reduced VAT rate is 13.5%. Certain pharmaceutical products including condoms are included in Annex H. It would therefore be possible to apply the reduced rate of VAT to condoms. In any event, if there was a reduction in the rate of VAT applying to condoms, I am not convinced, given the mark ups in the sector, that any rate reduction would necessarily be fully reflected in retail prices for condoms.