asked the Minister for Finance the estimated increase in revenue in the current financial year from the latest price increases in (a) beer and spirits and (b) petrol and fuel products generally.
Ceisteanna—Questions. Oral Answers. - Price Increases Tax Yields.
45.
The estimated increases in revenue in respect of the items mentioned in the Deputy's question are £400,000 and £450,000, respectively, for the current financial period April to December, 1974. These figures do not take into account the possibility of a consequential diversion of expenditure from other consumer items, which if it took place would tend to keep the overall yield from VAT at the figure forecast for budgetary purposes.
When the Minister states that this estimate relates to VAT only does he make an allowance for the income tax returns of the individual or the company which may be affected by the profits?
I have not got details of this breakdown.
I am sure the Minister is aware that my reason for asking the question is that this is a simple budgetary exercise to allow prices to go up so that tax may be accumulated without appearing that the Minister did it.
Perhaps the Deputy has not seen the comments of those who conceded the increase. They said it would not add to their profits and in fact was inadequate to meet their overheads. If they are right there could be no question of additional profits which could be subject to income tax.
It will add to the Minister's profits.
The Minister's profits are substantially improved.
No. I did not introduce VAT.