Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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576. To ask the Minister for Finance if consideration will be given in Budget 2026 to reducing VAT on essential food items, in view of Eurostat figures showing Irish food inflation running at 5% in August 2025, nearly three times the headline rate of inflation. [46826/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the EU VAT Directive, which Irish VAT legislation must comply, generally holds that all goods and services are liable for VAT at the standard rate unless they are specifically exempt from VAT through certain provisions or if they are included in the categories of goods and services listed under Annex III of the Directive where a reduced rate of VAT may be applied.

"Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs;" are included under Annex III of the Directive which qualify for a reduced rate of VAT.

Under paragraph 8 of Schedule 2 and paragraph 3 of Schedule 3 to the Value-Added Tax Consolidation Act 2010, Ireland applies a zero per cent rate to the supply of most foodstuffs. Further information including a full list of included goods is available from Revenue at www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/vat-on-food-and-drink-supplied-by-wholesalers-and-retailers.pdf.