asked the Minister for Finance if he will exempt school books from VAT.
Ceisteanna—Questions. Oral Answers. - Application of VAT.
16.
Books of all kinds are subject to the lower rate of VAT at 5.26 per cent. It is not practicable to distinguish at the point of sale between school books and other books, and exemption for school books is, therefore, not possible.
May I ask the Minister if exemption is possible in EEC countries?
I cannot tell the Deputy that offhand.
I can tell the Minister. In every EEC country school books are not subject to value-added tax. We are the only exception so far.
Actually, when the wholesale tax was introduced, it was intended that it should not apply to school books but it was found in practice that school books could not be distinguished from other books and eventually the wholesale tax was taken off books altogether and this was one of the reasons that no distinction could be made. I can only tell the Deputy the practical experience we have had in trying to apply this distinction.
In EEC countries a distinction is made in regard to this matter.
If we can learn that little trick from Europe it may be useful.
Can the Minister state if VAT applies to animals coming in to the country for stud purposes?
The question relates to school books. It has nothing to do with animals.
The Deputy will get a statement on that today or tomorrow. He should watch the newspapers.
Why not give the information to the House?
I have not got it here; in fact, I was not asked a question about it.
Does the Deputy not know that there is a comhairle ceanntar meeting tonight?
This shows the stupidity of VAT.
I am calling Question No. 17.
17.
asked the Minister for Finance if 16.37 per cent VAT will have to be paid on all outstanding debts incurred before 1st November, 1972, while wholesale tax has already been charged.
The answer is in the negative. VAT is ordinarily payable only in respect of goods sold and services rendered on or after November 1st, 1972. Certain traders may elect to be taxable on the basis of cash actually received on or after November 1st, but since wholesale tax which was chargeable on the same basis would relate only to receipts before November 1st, there could be no question of any double taxation.
People have been told that there would not be any extra cost involved as a result of VAT. Is the Minister aware that some people were notified before 1st November that any bills outstanding should be paid? Businessmen have discovered they will have to charge more after that date; for instance, where an account amounted to £100 up to now, a businessman finds he will have to charge £116 50p. That is an extra £16 50p which must be paid on every £100. Is the Minister aware this is happening?
I am aware that there have been instances of the kind described by the Deputy. I am also aware of the fact that there is no legal justification for them.