asked the Minister for Finance the extent to which the increased rate of VAT on petroleum products may affect the retail price of domestic petrol and diesel fuel for agricultural machines.
Ceisteanna—Questions. Oral Answers. - VAT on Petroleum Products.
20.
The increase in value-added tax as from 3rd September next on those goods and services, including petroleum products generally, which are liable at present to the 5.26 per cent rate, will amount to 1.42 per cent of retail prices, inclusive of the present tax.
I want to know specifically will the people have to pay one new penny or half a new penny per gallon on petrol in view of the fact that the Minister stated himself that there would be no increases in the prices?
The Minister said that there was no increase in the retail price of petrol as a result of excise duties imposed by the budget. That remains the position. The rises are as follows:
|
Grade I |
— |
.525p |
|
Grade II |
— |
.511p |
|
Grade III |
— |
.489p |
In view of the increases announced today and future increases on petroleum products has the Minister any idea, apart from VAT altogether, what prices for petroleum products may be by the 1st September?
Deputy Cunningham has made a mischievous remark which is not in accordance with the truth. These rates were given on budget day. In so far as petroleum products are concerned—as well as other products—we clearly stated what VAT would be on those products from September next.
We know what VAT will be. We do not know what anything else will be.
That was the only matter I was asked about in this question. The VAT increase on petrol is in some cases less than a half penny and in no case significantly in excess of it.
What is the extra revenue which the Minister would expect from the increase on petrol from VAT?
He cannot tell the Deputy. He does not know what the price of petrol would be.
I do not have that information with me at the moment.
I am trying to get at what the retailer will charge. He cannot charge .525p. Will that mean that he will put on 1p to maintain his profit margin?
No.
I think he will.
The trade are well aware of the steps necessary to obtain permission for increases in their prices.