I move:
(1) That, with effect on and from the 1st day of July, 1975—
(a) the Value-Added Tax Act, 1972 (No. 22 of 1972), be amended by the addition of the following paragraphs to the Second Schedule—
"(xvii) clothing, including textile handkerchiefs and footwear;
(xviii) fabrics, yarn and thread of a kind normally used in the manufacture of clothing, including elastics, tape and padding materials in the form supplied for the manufacture of clothing;
(xix) sole and upper leather of a kind supplied for the manufacture and repair of footwear, and also soles, heels and insoles of any material;
(xx) (a) coal, peat and other solid substances held out for sale solely as fuel,
(b) gas of a kind used for domestic or industrial heating or lighting, whether in gaseous or liquid form, but not including gas of a kind normally used for welding and cutting metals or gas sold as lighter fuel,
(c) electricity,
(d) hydrocarbon oil of a kind used for domestic or industrial heating not being hydrocarbon oil sold for use in internal combustion engines.",
(b) in consequence of the amendment specified in subparagraph (a) of this paragraph, the Value-Added Tax Act, 1972, be further amended as follows:
(i) by the deletion of paragraphs (xi), (xii) and (xiii) of Part I of the Third Schedule,
(ii) by the substitution, for paragraph (xxiii) of Part I of the Third Schedule, of the following paragraph: "(xxiii) fuel other than fuel of a kind specified in paragraph (xx) of the Second Schedule;",
(iii) by the insertion in paragraph (xxiv) of Part I of the Third Schedule, after "(including greases)", of "other than hydrocarbon oils of a kind specified in paragraph (xx) of the Second Schedule",
(iv) by the insertion in paragraph (xxviii) of Part I of the Third Schedule, after "specified in", of "the Second Schedule or",
(v) by the addition of the following paragraph to Part II of the Third Schedule:
"(viii) the hiring of goods of a kind specified in paragraph (xvii) of the Second Schedule".
(vi) by the substitution, in section 8 (3) (a) (i), of ", (xv) and (xx) of the Second Schedule" for "and (xv) of the Second Schedule" (inserted by the Finance Act, 1973 (No. 19 of 1973)) and by the substitution of "and (xxii) of Part I of the Third Schedule" for ", (xxii) and (xxiii) of Part I of the Third Schedule",
(vii) by the substitution, in section 8 (3) (b) (ii), of ", (xii) to (xv) or (xvii) to (xx)" for "or (xii) to (xv)" (inserted by the Finance Act, 1973),
(viii) by the substitution, in section 11 (1) (b), of ", (xii) to (xv) and (xvii) to (xx)" for "and (xii) to (xv)" (inserted by the Finance Act, 1973), and
(ix) by the substitution, in section 11 (1) (d), of ",(xii) to (xv) and (xvii) to (xx)" for "and (xii) to (xv)" (inserted by the Finance Act, 1973), and
(x) by the substitution, in section 15 (2) (a) (ii), of ", (xii) to (xv) and (xvii) to (xx)" for "and (xii) to (xv)" (inserted by the Finance Act, 1973).
(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
The resolution removes from the value-added tax by application of the zero rate the following items : clothing (including textile handkerchiefs and footwear); certain clothing and footwear materials and fuels, including electricity but not road fuels. The relief, which will take effect as and from Tuesday next, will have the effect of entirely removing the existing tax, 6.75, from the items affected. As a consequence the prices involved should be reduced as from 1st July for supplies made and paid for on or after that date. The cost to the Exchequer of granting these reliefs is £8.2 million in the current year and £27.2 million in a full year.
I should like to add, in reply to a question raised earlier, that registered sellers may continue to obtain a credit or refund in respect of any tax suffered by them on their purchase of taxable goods.
