Pearse Doherty (Donegal South West, Sinn Fein)
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Question 119: To ask the Minister for Finance the respective figures for taking the following groups out of the universal social charge: those earning below €10,000, €11,000, €12,000, €13,000, €14,000, €15,000, €16,000, €17,000, €18,000, €19,000, €20,000, €21,000, €22,000, €23,000, €24,000 and €25,000. [37414/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the estimated full year costs to the Exchequer, estimated by reference to 2012 incomes, of increasing the existing exemption threshold of €4,004 per annum for the Universal Social Charge (USC) to the proposed thresholds, are set out in a table.

Costs are rounded to nearest €5 million.

These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends for the year 2012. They are, therefore, provisional and may be revised.

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 120: To ask the Minister for Finance the amount that would be raised for the Exchequer in a full year by increasing the VAT rate by 1%. [37415/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 121: To ask the Minister for Finance the amount that would be raised for the Exchequer by increasing the VAT rate by 2%. [37416/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 122: To ask the Minister for Finance the cost of cutting the top VAT rate by 1%. [37417/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 123: To ask the Minister for Finance if he will provide a breakdown of the various VAT groupings, VAT-free items, the lower rate and the higher rate of VAT. [37418/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 120 to 123, inclusive, together.

The yield to the Exchequer in a full year where the VAT rates are increased by 1% and 2% are outlined in the following table:

If the current standard VAT rate of 21% was reduced by 1% to 20%, this would cost the Exchequer €335 million.

Following the introduction of a second reduced VAT rate on 1 July 2011, Ireland's VAT rate structure is as follows: Standard rate of 21% - this applies to the majority of goods and services accounting for 51% of all goods and services, including cars, petrol, diesel, alcohol, tobacco, electrical equipment and CD/DVDs. Under the EU VAT Directive, Member States may set the standard VAT rate not lower than 15% and there is political agreement that it does not exceed 25%. Reduced rate of 13.5% - this applies mainly to residential housing, labour intensive services and general repairs and maintenance. Member States may have up to two reduced VAT rates of not less than 5% for a specified number of goods or services which are set out in Annex III of the VAT Directive. Member States also have the option of maintaining, at a reduced rate of not less than 12%, any items not listed in Annex III, provided they carried a reduced rate on 1 January 1991. These items are known as 'parked' and Ireland's parked rate is 13.5%. Fuel used for heat or light, and commercial construction are examples of parked items. All items at the 13.5% reduced rate and parked rate account for 25% of goods and services subject to VAT. Reduced rate of 9% - applies mainly to tourism services including hotel and holiday accommodation, restaurant services, and various entertainment services. The rate was introduced as part of the Jobs Initiative and applies from 1 July 2011 until end December 2013. It accounts for around 11% of all goods and services. Zero rate – this generally applies to most food, children's clothes and shoes, and oral medicines, and accounts for 13% of goods and services subject to VAT. While it is possible to retain the zero rating for goods and services that were in place on 1 January 1991, the zero rate cannot be applied to any new items. 4.8% livestock rate - Ireland applies a VAT rate of 4.8% which is limited to livestock sold by VAT registered persons/firms. As with the zero and parked rates, Ireland is entitled to maintain this rate for historic reasons. Exempt activities - services provided by charities, non-profit organisations and certain financial services are exempt from VAT, as are schools and hospitals etc. Exempt suppliers do not generally charge VAT on the services they provide and cannot reclaim VAT incurred on the goods and services they purchase.