Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 46: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether the 0.5% increase in VAT will affect consumer spending in any way in the next 12 months. [41952/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The increase in the standard rate of VAT from 21% to 21.5% was announced by my colleague the Minister for Finance in his recent budget statement. Responsibility in relation to taxation matters, including VAT, lies with the Minister for Finance and I have no direct function in the matter.

As the Deputy is aware, consumer price inflation is easing, which will help real disposable income. Accordingly, it is not anticipated that there will be any considerable negative impact from the increase in VAT on consumer spending.