asked the Minister for Finance the total amount of revenue collected in turnover tax and wholesale tax in respect of newspapers and periodicals for the period 1st January to 31st May, 1972.
Ceisteanna—Questions. Oral Answers. - Newspaper and Periodical Taxes.
11.
Turnover tax and wholesale tax are payable monthly in one sum by registered persons on their total receipts from sales of taxable goods to unregistered persons. A breakdown of the amounts paid by reference of particular commodities is not required and, accordingly, the precise amount of tax collected in respect of newspapers and periodicals is not available. However, from the statistics of home production and imports, and making allowance for exports, it is estimated that the yield from the two taxes on newspapers and periodicals in the period 1st January to 31st May, 1972, is £750,000.
In view of the comparatively small amount of revenue involved, having regard to the total revenue of the State, would the Parliamentary Secretary not agree that newspapers and periodicals should be exempted from the VAT Bill which is being processed through the House at the moment?
Actually what is proposed at the moment in relation to the newspapers and periodicals is that they would come in at the lower rate of 5.26 per cent. This will mean a loss to the State of £1.3 million so they will be better off under VAT than they are under the existing wholesale and turnover taxes.
Granted they will be better off but is the Parliamentary Secretary not aware that there are fears that their position will still be prejudiced even by having to pay this reduced rate? As I say, the amount of revenue in relation to the entire revenue of the State is so small would the State not exempt newspapers completely?
I do not think that would be feasible at this stage. I would point out that Belgium, for instance, pays 6 per cent and Germany 5.5 per cent. I think the proposals are reasonable.
Would the Parliamentary Secretary not agree that this will have a detrimental effect on the provincial press?
In effect these people will have to pay 10 per cent less tax than what they are paying now. It is being reduced from 10 per cent wholesale tax and 5 per cent turnover tax to 5.26 per cent VAT, so they are making a substantial saving.
Is the Parliamentary Secretary not aware that even with the reduction it will have a detrimental effect on the provincial press? We are up in arms against it.
Not at all. They will benefit greatly under this proposal.