Dáil Éireann debate -
Wednesday, 22 Apr 1970

Vol. 245 No. 11

Financial Resolutions. - Financial Resolution No. 2: Turnover Tax.

The Taoiseach

I move:

(1) That the Finance Act, 1963, (No. 23 of 1963), shall, as on and from the 1st day of May, 1970, be amended—

(a) by the substitution in section 53 (1) of "five per cent" for "two and one-half per cent",

(b) by the addition to section 53 (2) (a) of "together with two and one-half per cent of the taxable turnover",

(c) by the substitution in section 53 (2) (b) of "£2 15s Od" for "5s", and

(d) by the substitution in section 64 (1) of "five per cent" for "two and one-half per cent".

(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

Mr. Cosgrave

This resolution as it stands makes no exemption in regard to food and other necessaries of life; it applies uniformly to all items covered by the turnover tax.

The Taoiseach

The same exemptions will be continued. There is no change.

Mr. Tully

What exemptions are those? Are they medicines?

The Taoiseach

If the Deputy would consult the guide to the turnover tax— I know he has not got it handy—all the exemptions are there. All the exemptions that have operated to date are continued.

Mr. Tully

Those are very limited and in fact the introduction of this turnover tax will have the same effect as the introduction of the original turnover tax which almost put down the Government but for the help of a few friends. We know where some of them are now. It was received with despair and this increase will be received in the same way.

Mr. Cosgrave

This turnover tax does precisely what the NIEC report and various commentators said should not be done: it further raises the cost of living. The exemptions are of minimal importance. We regard this tax as increasing substantially the cost of living particularly on those least able to bear it. Consequently, we are opposed to it.

Mr. Donegan

What is the meaning of subsection (c) "by the substitution in section 53 (2) (b) of `£2 15s Od' for ` 5s', ..."? It sounds an extraordinary difference.

The Taoiseach

These are references to the reduced charge on the first £100 of turnover for tax purposes. In view of the increase, this charge will also go up by £2½ per cent making it £2 15s.

Dr. O'Donovan

It was generally agreed in 1964 that the turnover tax increased the cost of living by 5 or 6 per cent. On what grounds does the Taoiseach now suggest it will increase the cost of living by 6d? I am aware the Exchequer will get only that much. However, like all bad taxes, it will take a great deal of money out of the pockets of the people.

Question put.

The Committee divided: Tá, 68; Níl, 57.

Tá

• Barrett, Sylvester.
• Blaney, Neil.
• Boland, Kevin.
• Boylan, Terence.
• Brady, Philip A.
• Brennan, Joseph.
• Brennan, Paudge.
• Briscoe, Ben.
• Brosnan, Seán.
• Browne, Patrick.
• Browne, Seán.
• Burke, Patrick J.
• Carter, Frank.
• Carty, Michael.
• Childers, Erskine.
• Colley, George.
• Collins, Gerard.
• Connolly, Gerard C.
• Cowen, Bernard.
• Cronin, Jerry.
• Crowley, Flor.
• Cunningham, Liam.
• Davern, Noel.
• de Valera, Vivion.
• Dowling, Joe.
• McEllistrim, Thomas.
• MacSharry, Ray.
• Meaney, Thomas.
• Molloy, Robert.
• Moore, Seán.
• Moran, Michael.
• Nolan, Thomas.
• Noonan, Michael.
• O'Kennedy, Michael.
• Fahey, Jackie.
• Faulkner, Pádraig.
• Fitzpatrick, Tom (Dublin Central).
• Flanagan, Seán.
• Foley, Desmond.
• French, Seán.
• Gallagher, James.
• Geoghegan, John.
• Gibbons, Hugh.
• Gibbons, James.
• Gogan, Richard P.
• Healy, Augustine A.
• Herbert, Michael.
• Hillery, Patrick J.
• Hilliard, Michael.
• Hussey, Thomas.
• Kenneally, William.
• Kitt, Michael F.
• Lalor Patrick J.
• Lemass, Noel T.
• Lenehan, Joseph.
• Lenihan, Brien.
• Loughnane, William A.
• Lynch, Celia.
• Lynch, John.
• O'Leary, John.
• O'Malley, Des.
• Power, Patrick.
• Sherwin, Seán.
• Smith, Michael.
• Smith, Patrick.
• Timmons, Eugene.
• Tunney, Jim.
• Wyse, Pearse.

Níl.

• Barry, Peter.
• Barry, Richard.
• Begley, Michael.
• Belton, Luke.
• Bruton, John.
• Burke, Joan.
• Burke, Liam.
• Burke, Richard.
• Burton, Philip.
• Byrne, Hugh.
• Collins, Edward.
• Conlan, John F.
• Coogan, Fintan.
• Cooney, Patrick.
• Corish, Brendan.
• Cosgrave, Liam.
• Cott, Gerard.
• Creed, Donal.
• Crotty, Kieran.
• Cruise-O'Brein, Conor.
• Desmond, Barry.
• Dockrell, Henry P.
• Dockrell, Maurice E.
• Donegan, Patrick S.
• Donnellan, John.
• Dunne, Thomas.
• Enright, Thomas W.
• Esmonde, Sir Anthony C.
• Finn, Martin.
• FitzGerald, Garret.
• Fitzpatrick, Tom (Cavan).
• Flanagan, Oliver J.
• Fox, Billy.
• Governey, Desmond.
• Harte, Patrick D.
• Hogan, Patrick.
• Hogan O'Higgins, Brigid.
• Jones, Denis F.
• Kavanagh, Liam.
• Keating, Justin.
• Kenny, Henry.
• L'Estrange, Gerald.
• McLaughlin, Joseph.
• Malone, Patrick.
• Murphy, Michael P.
• O'Donnell, Tom.
• O'Donovan, John.
• O'Hara, Thomas.
• O'Higgins, Thomas F.
• O'Reilly, Paddy.
• O'Sullivan, John L.
• Pattison, Séamus.
• Taylor, Francis.
• Thornley, David.
• Timmins, Godfrey.
• Treacy, Seán.
• Tully, James.

Tellers: Tá: Deputies O'Malley and Meaney; Níl: Deputies R. Burke and Tully.

Question declared carried.