Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
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Question 290: To ask the Minister for Finance the figure for income generated from the 21% VAT rate on condoms; and if he will make a statement on the matter. [7261/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the information to be furnished by taxable persons on VAT returns does not require the yield from particular commodities to be identified. Consequently, the information requested is not available.

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.

Member States are however permitted to apply the reduced VAT rate to goods or services listed in Annex III of the EU VAT Directive. In Ireland the reduced VAT rate is 13.5%. Certain pharmaceutical products including condoms are included in Annex III. 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.