Michael Healy-Rae (Kerry, Independent)
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142. To ask the Minister for Finance if the VAT rate can be reduced to 20% (details supplied); and if he will make a statement on the matter. [33537/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The OECD, in its hierarchy of taxes, state that taxes on property and consumption are less harmful to economic growth than personal and corporate taxes.  A reduction in the standard VAT rate from 23% to 20% would cost the Exchequer €1.23 billion in a full year.

I would point out that, as of 1 January 2017, 23 of the 28 EU Member States have a standard VAT rate of 20% or higher and the average standard rate in the EU is 21.5%. While Ireland's standard VAT rate is higher than the average rate, six Member States apply standard rates higher than 23% and 2 other Member States also apply a rate of 23%.  Furthermore, the standard rate VAT differential between Ireland and the UK has narrowed from a high of 6.5 percentage points in 2009 to 3 percentage points since January 2012.