Written answers

Thursday, 5 April 2007

5:00 pm

Photo of Ciarán CuffeCiarán Cuffe (Dún Laoghaire, Green Party)
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Question 176: To ask the Minister for Finance his views on eliminating or reducing the rate of value added tax on condoms and other prophylactics; and if he will make a statement on the matter. [13611/07]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the scope for reducing or removing the VAT rate applicable to any good or service is determined under EU VAT law, with which Irish law must comply. It is not possible under EU law 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 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.

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.

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