Written answers

Wednesday, 21 February 2007

11:00 pm

Photo of Ned O'KeeffeNed O'Keeffe (Cork East, Fianna Fail)
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Question 201: To ask the Minister for Finance his views on reducing the VAT on bottled water in view of the number of householders who use bottled water for drinking and cooking purposes owing to contamination problems which occurred with their town water supply and while it is rectified are fearful or using same for drinking and cooking purposes. [6725/07]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The position is that bottled water was standard rated with effect from November 1992. This change was made to correct a competitive anomaly, as prior to that non manufactured bottled water was zero rated while similar competing products such as soft drinks were standard rated. The change in the VAT treatment coincided with the removal of excise duty from bottled water in November 1992.

Where a product was zero rated prior to 1 January 1991 but subsequently standard rated: it is not possible to reintroduce the zero rate for that product. However, under Annex III of the EU VAT Directive, Member States are permitted to apply a reduced rate to bottled water. It would therefore be possible under EU VAT rules to apply a reduced rate of 13.5%, rather than 21% to these products.

In any event, if there was a reduction in the rate of VAT applying to bottled water, I am not convinced, given the mark ups in the sector, that any rate reduction would necessarily be fully reflected in retail prices for bottled water.

Photo of Niall BlaneyNiall Blaney (Donegal North East, Fianna Fail)
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Question 202: To ask the Minister for Finance his views on full exemption of stamp duty for first time buyers on their first site to build their family home where the cost of site does not exceed €150,000; and if he will make a statement on the matter. [6778/07]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The purchase of land, with an intention to build housing, by an individual or a developer normally attracts a stamp duty liability. Where a developer buys land and incurs a stamp duty liability, it is reasonable to assume that the stamp duty charge will be included in the final price being paid by home purchaser. The Deputy will be aware that I have introduced a Committee Stage amendment to the Finance Bill 2007 to deal with tax avoidance by developers using licensing and resting in contract arrangements where stamp duty is not paid on the use of the site by the developer. As regards the proposal by the Deputy, I will keep the matter under review but any such new relief for a site would need to be carefully devised to ensure that the first-time buyer would build a house on it within a short specified period and not sell it on for speculative purposes.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 203: To ask the Minister for Finance the number of PAYE workers in County Mayo; the numbers who pay income tax; and if he will make a statement on the matter. [6880/07]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that on the basis of P35 returns filed by employers for the income tax year 2004, the latest year for which the necessary detailed statistics are available, some 40,700 income earners were identified as being active on the PAYE record for the tax district of County Mayo, of whom 24,700 pay income tax.

A married couple which has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

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