Jackie Cahill (Tipperary, Fianna Fail)
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227. To ask the Minister for Finance if his Department will be looking into the removal of VAT on AED devices in the wake of agreement by EU Finance Ministers to amend Council Directive 2006/112/EC on 7 December 2021; and if he will make a statement on the matter. [10519/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the EU Commission published a proposal on the reform of VAT rates in January 2018 which would allow Member States more flexibility in how they apply VAT rates. The compromise text agreed at ECOFIN in December has been amended significantly in comparison to the original proposal so the EU Parliament will once again be consulted for their opinion. While not providing for as much flexibility as the original proposal it still provides greater scope for Member States to make changes when it comes to setting VAT rates.

Once the Parliament has issued its opinion on the proposal, the Council will formally adopt the directive. I understand that when the Slovenian Presidency wrote to the European Parliament an early response was requested but it is ultimately a matter for the European Parliament when such a response issues. I understand from my officials that they expect the response in the coming months. Following the Council formally adopting the directive it will be published in the Official Journal of the European Union and will enter into force on the twentieth day following that of its publication.

In the interim officials in my Department will be reviewing the options now available to Ireland in setting VAT rates. Future tax changes are generally taken in the context of the Budget. Deputies will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the budgetary process, alongside a wide range of submissions from various stakeholders and lobby groups.