Mary Lou McDonald (Dublin Central, Sinn Fein)
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Question 108: To ask the Minister for Finance if he will extend the current universal social charge ceiling of 4% for medical card holders to widows and widowers in budget 2012 announcements. [37108/11]

Michael Noonan (Limerick City, Fine Gael)
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It is a long-standing practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.

Michael Healy-Rae (Kerry South, Independent)
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Question 109: To ask the Minister for Finance if he will review a matter (details supplied) regarding VAT; and if he will make a statement on the matter. [37112/11]

Michael Noonan (Limerick City, Fine Gael)
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VAT is a tax on the value added to a supply and the collection and recovery of VAT takes place at each stage of the chain of supply from manufacturing to retailer. Under EU and domestic VAT rules traders who are registered for VAT collect VAT on the goods and services that they sell. In turn such traders are entitled to recover the VAT they incur on their business inputs used in the purchase or production of goods or delivery of services. Consequently, if there is a decrease in value at any stage in the process the trader is entitled to a refund of the excess of VAT incurred over that collected. In this regard, where a retailer is in a situation of net VAT gain as a result of below cost selling, this is not a loss to the Exchequer or an additional benefit to the retailer, it is merely how VAT is charged.