Anne Ferris (Wicklow, Labour)
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Question 84: To ask the Minister for Finance if he will respond to a matter in relation to VAT (details supplied); and if he will make a statement on the matter. [34357/12]

Michael Noonan (Limerick City, Fine Gael)
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The VAT treatment of goods and services is governed by EU law with which Irish VAT law must comply. Although there is merit in the proposal to limit tax abuse in the construction sector through the introduction of a VAT refund for home owners employing VAT compliant builders, enforcement of tax law through tax reductions is not an advisable policy, especially in the current economic climate. The black economy in the construction sector is dealt with, and should continue to be dealt with, through ongoing enforcement procedures by the Revenue Commissioners. I would point out that construction services, including house improvements, are subject to the 13.5% reduced VAT rate instead of the general standard rate of 23%.