James O'Connor (Cork East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

69. To ask the Minister for Agriculture, Food and the Marine the discussions he has had with Government colleagues ahead of Budget 2025 in relation to the possible reduction of VAT on vaccines for animals; and if he will make a statement on the matter. [38185/24]

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

While taxation policy is primarily the responsibility of my colleague the Minister of Finance, I work closely with him on taxation issues relating to the agri-food sector. As the Deputy may be aware, it is a long-standing practice of the Minister of Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.

Under the Irish taxation system oral and non-oral vaccines are treated differently for VAT purposes with non-oral vaccines subject to the standard rate of 23%, while oral vaccines are exempt.

Up to recently, it was the case that for a zero rate of VAT to be applied to a good or service, that good or service must have applied at the zero rate on 1 January 1991 and have continued to apply at that rate since. No new items could be charged at the zero rate where they had not been subject to the zero rate before 1991. In Ireland the zero VAT rate applied only to oral medicines, including oral medicines for animals, as they were subject to the zero rate on and since 1 January 1991.

A new agreement at EU level in 2022 gives more flexibility to Member States when setting VAT rates, including those related to animal vaccines.

I believe that the increased use of animal vaccines would improve animal health, food safety, farm profitability and that it would also deliver environmental benefits.