asked the Minister for Finance whether the turnover tax will apply to metered water supplied by local authorities.
Ceisteanna—Questions. Oral Answers. - Incidence of Turnover Tax.
30.
I propose in the course of the next few days to make an order exempting from the turnover tax all sales of water by local authorities.
Would the Minister consider doing away with the turnover tax altogether when he has made a start in the case of water?
31.
asked the Minister for Finance if the turnover tax will be applied to bus and rail fares in Dublin city and county; and, if so, whether he will state the nature of the proposed application.
32.
asked the Minister for Finance if turnover tax will be applied to Dublin bus fares, and, if so, in what way.
I propose with the permission of the Ceann Comhairle to take Questions Nos. 31 and 32 together.
In each case, the answer to the first part of the question is in the negative and, accordingly, the second part of the question does not arise.
33.
asked the Minister for Finance if turnover tax will be applied to supplies purchased by CIE.
Since CIE will not have to pay tax on their receipts or to register for the purposes of the tax, supplies purchased by them will, in general, be treated in the same way as supplies purchased by other unregistered persons. The suppliers will pay tax on the moneys received from the sales and will, presumably, increase prices to cover the tax liability.
I propose, however, in the course of the next few days, to make exemption orders which will have the effect of relieving from tax sales of heavy plant, machinery and equipment used by CIE. Relief will also be available in respect of goods supplied under contracts in existence before the 1st August, 1963.
34.
asked the Minister for Finance if turnover tax will be applied to supplies purchased by hospitals and nursing homes.
Since hospitals and nursing homes will not be liable to pay tax on their receipts, supplies purchased by them will be treated in the same way as supplies purchased by domestic consumers. The suppliers will pay tax on the moneys received from the sales and will, presumably, increase prices to cover the tax liability. Many hospitals, however, receive their supplies under contract. It will be recalled that relief from tax is given in respect of payments made under contracts entered into before the 1st August, 1963, even though the payments may be made after the 1st November.
Would the Minister indicate whether in respect of those commodities on which voluntary hospitals will have to pay the turnover tax, such as food, where deficits are incurred in consequence, those deficits will be met from the Hospitals Sweep-stakes?
I think the Deputy will have to address that question to the Minister for Health.
It is clear, in any case, that supplies bought next year will be subject to the turnover tax?
When the contracts run out, yes.
May I ask the Minister whether any contract commencing on 1st October, 1963, is subject to turnover tax?
Any contracts made before 1st August, 1963, will be exempt.
In order to get a contract for the supply of goods to any institution contractors must tender long before 1st October but, after 1st August, is that contract subject to turnover tax?
No. Oh, it is, yes—it is.
One of them says no and the other says yes.