Ruairi Quinn (Dublin South East, Labour)
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Question 363: To ask the Minister for Enterprise, Trade and Employment the steps he proposes to take to ensure that the reduction in VAT from 21% to 13.5% on car booster seats, which was announced in Budget 2007 and which will come into effect from 1 April 2007, is passed on to consumers by retailers; and if he will make a statement on the matter. [8515/07]

Micheál Martin (Cork South Central, Fianna Fail)
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Where the rate of VAT applying to a specific good or service is reduced, I would expect that retailers would apply the reduced rate of VAT in respect of that good or service so that consumers ultimately benefit. The Revenue Commissioners as part of their function of collecting VAT returns also verify that the returns made by retailers accord with the provisions of the relevant tax code.

It may be that the Deputy is concerned that some retailers might use the opportunity of the reduction in VAT to profiteer by increasing the price of goods to consumers. In such circumstances, I would strongly urge consumers to use the power of their own pockets by only giving their business to retailers who they are satisfied offer value for money.

With regard to car booster seats, I understand that the reduction in VAT on these products brought about by the budget will take effect from 1st May. Consumers purchasing these products after that date may wish to query retailers as to whether the reductions in VAT have been passed on before satisfying themselves that the price being charged for the product represents a fair deal.

I have brought the matter to the attention of the Director of Consumer Affairs and the National Consumer Agency and have asked them to consider whether they might play a role in this matter.