asked the Minister for Finance the date and rate of wholesale tax as introduced and dates and rates of subsequent adjustments.
Ceisteanna — Questions. Oral Answers. - Wholesale Tax.
22.
Wholesale tax was introduced at the rate of 5 per cent on the 1st October, 1966. The rate was increased to 10 per cent from 1st January, 1969.
A rate of 15 per cent was applied to a limited number of articles from the 1st June, 1969. This was increased to 20 per cent from the 1st November, 1970.
Is the Minister aware that the rate of wholesale tax as stated by him is not actually applied?
No.
Is there not some clause stating that where the goods are not for resale the full tax does not apply? This refers to the wholesale tax. Is the Minister aware of that?
Is the Deputy talking about exemption from wholesale tax?
No, I am not. I am talking about wholesale tax. When it was 10 per cent there was a clause stating that where the goods were purchased and were not for resale the wholesale tax of 10 per cent did not apply. The public are not aware of that fact.
Is there any rate of inflation anywhere in the world that compares with the rate of inflation of this particular tax over the last three years?
It is quite clear that the increases in wholesale and turnover tax are a direct consequence, and a reflection of the inflation which the economy has been suffering from.
May I ask the Minister for a direct reply to my question? There is no doubt but that the rate of inflation in this economy has been extreme in recent years. Is there any rate of inflation to compare with the rate of inflation of this tax? I should like the Minister to answer this truthfully, even if he says "yes".
I think the answer is "yes", actually.