Michael McGrath (Cork South Central, Fianna Fail)
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Question 81: To ask the Minister for Finance the expected reduction in VAT Exchequer receipts for the remainder of 2011, if the lower VAT rate is reduced from 13.5% to 12% from 1 July 2011; and the corresponding effect in VAT receipts for the full calendar year 2012 arising from the rate reduction. [8272/11]

Michael Noonan (Limerick City, Fine Gael)
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The Government has committed in the Programme for Government, to lower the 13.5% reduced rate of VAT to 12% up to the end of 2013. It is estimated that a reduction of 1.5% in the reduced VAT rate with effect from 1 July 2011 would reduce Exchequer receipts for 2011 by €118m. The cost of reducing the rate to 12% in 2012, and in a full year, would be €353 million.