Micheál Martin (Cork South Central, Fianna Fail)
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174. To ask the Minister for Finance the total amount of tax collected on the sale of bottled water on an annual basis in the period 2012 to 2016, including excise taxes and VAT on sales; his views on the trends in recent years; and if he will make a statement on the matter. [26765/16]

Micheál Martin (Cork South Central, Fianna Fail)
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177. To ask the Minister for Finance the status of the 23% VAT rate on bottled water; and if he will make a statement on the matter. [26799/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 174 and 177 together.

Bottled water is subject to the standard VAT rate which is currently 23%. The standard rate is the VAT rate applied to bottled water in the majority of EU Member States.  Prior to 1992 bottled waters and fruit juices had applied at the zero rate, but were made subject to the standard rate from 1 November 1992 in order to correct a competitive anomaly, as similar competing products such as soft drinks were standard rated. The change in the VAT treatment coincided with the removal of excise duty from bottled water.

Where a product was zero rated prior to 1 January 1991 but subsequently standard rated, it is not possible to reintroduce the zero rate for that product.  However, under Annex III of the EU VAT Directive, Member States are permitted to apply a reduced rate of not less than 5% to bottled water. It would therefore be possible to apply our reduced rate of 9% or 13.5% to these drinks.  However, a reduction in the rate of VAT on such a product would be costly to the Exchequer and I have no plans to reduce the rate of VAT on bottled water.

I am informed by Revenue that the information provided on tax returns does not require the yield from specific products or activities to be identified. It is therefore not possible to provide separate figures on the amount of tax collected from the sale of bottled water. Excise taxes are not charged on bottled water.