Written answers

Tuesday, 10 February 2009

9:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 206: To ask the Minister for Finance the cost to the Exchequer if there was a 1% reduction on the standard rate of VAT. [4332/09]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 207: To ask the Minister for Finance the cost to the Exchequer if there was a 2% reduction on the standard rate of VAT. [4333/09]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 208: To ask the Minister for Finance the cost to the Exchequer if there was a 3% reduction on the standard rate of VAT. [4334/09]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 209: To ask the Minister for Finance the cost to the Exchequer if there was a 4% reduction on the standard rate of VAT. [4335/09]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 210: To ask the Minister for Finance the cost to the Exchequer if there was a 5% reduction on the standard rate of VAT. [4336/09]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 211: To ask the Minister for Finance the cost to the Exchequer if there was a 6% reduction on the standard rate of VAT. [4337/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 206 to 211, inclusive, together.

I am informed by the Revenue Commissioners that the estimated full year cost to the Exchequer of a reduction in the standard rate of Value Added Tax by 1%, 2%, 3%, 4%, 5% and 6% is as follows.

Estimated cost to the Exchequer of reductions in Standard rate of VAT
Existing RateReductionNew RateCost
%%%â'¬m
21.51.020.5390
21.52.019.5780
21.53.018.51,170
21.54.017.51,560
21.55.016.51,950
21.56.015.52,340

The estimates provided are based on current expectations of VAT yield in 2009.

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