Peadar Tóibín (Meath West, Sinn Fein)
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Question 177: To ask the Minister for Finance if he will detail his Department's assessment of the effect of the increase in VAT on job creation and retention. [4117/12]

Michael Noonan (Limerick City, Fine Gael)
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The standard VAT rate was increased in the budget from 21% to 23% as part of a general package of raising revenues measures to contribute to Exchequer funding and is in line with commitments made in the Programme for Government and in the EU/IMF Programme. The €670 million raised by this VAT increase will go some way towards funding other costs in Exchequer spending.

As I said when I addressed the Dáil in December, the Government carefully considered the various options open to us in terms of taxation. One of the key objectives of the Government is to get people back to work. Indirect taxes have a less adverse impact on economic activity and employment, which is why Budget 2012 focused on indirect taxes such as VAT rather than on income tax.

Willie O'Dea (Limerick City, Fianna Fail)
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Question 178: To ask the Minister for Finance if he has made progress on the implementation of a single business tax; and if he will make a statement on the matter. [4158/12]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that the Programme for Government is a comprehensive document containing many proposals and commitments. Some, such as the Jobs Initiative, have already been delivered; others will be progressed over the lifetime of this Government. The Programme notes that we will direct the Revenue Commissioners to examine the feasibility of introducing – on a revenue neutral basis – a Single Business Tax for micro enterprises. The Revenue Commissioners are currently engaged in working with my Department on the preparation of the Finance Bill and this must remain a priority. Once this has been delivered it is my intention to have the feasibility of introducing such a tax examined by Revenue.