asked the Minister for Finance the amount of wholesale and turnover tax payable in the course of the construction and sale of a house retailing at £5,000.
Ceisteanna—Questions. Oral Answers. - Tax on House Sales.
8.
The amount of wholesale tax and turnover tax payable on the materials used in the construction of a house retailing at £5,000 is approximately £150.
Can we take it from the Minister, therefore, that the turnover and wholesale taxes amount to only £150?
That is the estimated amount.
Can the Minister give a breakdown of that figure?
The Deputy is aware that all of the items which go into the building of a house are not taxable. He is also aware that I can give only an estimated figure because a great deal would depend on the quality and on the price of the articles being put into the house.
May I remind the Minister that if the site for a £5,000 house costs £2,000, the amount of turnover tax payable on the site would be £100. Turnover tax will also have to be paid on the timber and on the fittings, while wholesale tax will have to be paid on other items. Therefore, the total figure would be in the region of £300 or £400 and not the figure quoted by the Minister. If the land was purchased——
We cannot have a debate on this.
——for £2,000, would the Minister not agree that turnover tax is payable on that amount at the rate of 5 per cent?
That is correct.
That makes a total of £100 whereas the Minister has given a figure of £150 as being the total amount payable in wholesale and turnover tax. I say the figure would be nearer to £400.
The Deputy asked the question but he is giving me the answer. Since he knows the answer why does he ask?
I want the approximate amount.
Will the Minister give a breakdown of the figure?
Question No. 9.
One cannot simply give a breakdown because some items in one house may be much more expensive than those in another house. Correspondingly, there may be changes in other items. These matters have a bearing on tax because some items are subject to tax while others are not.
Cement is the main one.
Will the Minister give a breakdown of the figure?
A survey was carried out on quite a number of houses and the result of that survey was as I have given it to the House.
Why not give the breakdown?
On what did the Minister base the figure of £150?
I have said that a survey was carried out on a number of houses and the result of that survey was that the tax worked out at approximately 3 per cent of the retail cost.
Why is the Minister afraid to give a breakdown?
Does the Deputy wish me to give him the result of the survey?
Why not?
Can the Deputy not do it for himself?
If the Deputy wants that kind of information he should at least put down a question and expect to receive a reply by written answer. Surely he knows that.
It is as a result of the Minister's reply that we are seeking a breakdown.
Can the Minister say if the Government have any plans to make good this £150 by an increase in grants?
No.