Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 83: To ask the Tánaiste and Minister for Finance his plans to have Annex III of the EU VAT Directive amended to include road safety products and thereby reduce the rate of VAT applicable on such products; and if he will make a statement on the matter. [1965/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the VAT Directive Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. As Annex III does not include the supply of road safety products, the only rate that can apply to such products is the standard VAT rate which in Ireland is 21%.

In relation to amending Annex III of the VAT Directive, the Deputy will be aware that this could only be done in the context of an overall review at Community level of reduced rates. Whilst the Commission launched a debate on reduced rates in July 2007, as yet, no specific Commission proposals have been brought forward. Generally, any significant review of the application of VAT across the different EU Member States can be complex.

Ciarán Lynch (Cork South Central, Labour)
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Question 84: To ask the Tánaiste and Minister for Finance his views on the possible introduction of tax relief on fees paid to property management companies; and if he will make a statement on the matter. [7720/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that individuals may claim tax relief in respect of the cost of 'service charges' (i.e. charges in respect of the provision of water for domestic purposes, domestic refuse collection or disposal or domestic sewage facilities). Full details are contained in Revenue's Explanatory leaflet and claim form IT 27 Tax Relief for Service Charges which is available on Revenue's website @ www.revenue.ie.

Where the management fee payable by residents to a management company set up to manage an apartment or other residential complex identifies an element in respect of such 'service charges', that element may, subject to the conditions outlined in Revenue's Explanatory Leaflet, qualify for tax relief up to the limits set out in that Leaflet. The remaining elements of the management fees, such as payments towards the upkeep and maintenance of the property and payments towards a sinking fund do not qualify for tax relief, as is the case for maintenance and upkeep expenses incurred by owner occupiers of residential properties in general.

There are already significant provisions in the tax code to assist owner occupiers of residential property in the form of special incentives such as: mortgage interest relief with larger relief for first-time buyers; stamp duty exemption and relief for new houses bought by owner-occupiers; stamp duty relief for second-hand houses bought and occupied by first-time buyers; capital gains tax exemption for a person's principal private residence and a dwelling house exemption for CAT purposes.