Ann Phelan (Carlow-Kilkenny, Labour)
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141. To ask the Minister for Finance if his attention has been drawn to the disparity that exists in the sale of nicotine replacement patches in Northern Ireland and here (details supplied); and if he will make a statement on the matter. [21274/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that nicotine replacement patches are subject to the standard rate of VAT in Ireland, currently 23%. Unlike other nicotine products, such as nicotine inhalers, tablets and chewing gum, which are categorised as oral medicines and therefore qualify for the zero-rate of VAT, nicotine replacement patches do not fall into this category and are therefore subject to the standard rate. While in the UK nicotine patches are liable to a reduced VAT rate of 5%, under the EU VAT Directive it is not possible for Ireland to apply a 5% VAT rate to the supply of nicotine patches. This is because the VAT Directive only permits Member States to apply two reduced rates of VAT, and as Ireland already applies two reduced VAT rates of a 9% and 13.5%, it would not be possible to apply a 5% rate to nicotine patches.