Catherine Connolly (Galway West, Independent)
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110. To ask the Minister for Finance his plans to reduce the VAT rate for newspapers and digital publications to zero, following a report (details supplied); the analysis that his Department has carried out on this matter; the details of any engagement that he has had with industry representatives on this matter; and if he will make a statement on the matter. [46374/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decision.

Currently newspapers are subject to a 9% VAT rate. It is acknowledged that Annex III of the VAT Directive which determines what products and services can fall into the reduced rate categories has been amended recently. In this regard, newspapers were recategorised in such a way that it is possible to apply a zero rate of VAT.

I am aware of the Report of the Future of Media Commission and its recommendation for a reduced or zero VAT rate for newspapers and digital publications. In addition my Department has recently had an engagement with the sector and consequently I have an understanding of the pressure it is facing at the moment. However, we are living in very challenging times, and the Government needs to continue to raise taxation in order to pay for the running of the State. This places limits on what I can do with the upcoming budget.

Revenue has indicated that the cost of zero rating newspapers and news oriented periodicals would be €42m.

In conclusion, I have made no decision on the zero rating of newspapers for VAT purposes. However it is important to note that just because a decision is not made this year, does not mean it cannot be considered next year, as the VAT Directive provides the necessary facility to change the rate at any time.