asked the Minister for Finance if he proposes to reduce VAT on furniture.
Ceisteanna—Questions. Oral Answers. - VAT on Furniture.
1.
As the Deputy will be aware, since VAT was introduced in 1972, the standard rate of the tax has applied to furniture as well as to many other household goods. No change in that regard is contemplated.
Is the Parliamentary Secretary aware that due to the high rate of VAT on furniture many furniture manufacturers and retailers find themselves in a very serious position because they have to compete with manufacturers and retailers across the border where VAT is levied at 8 per cent as against 19½ per cent here? Is he further aware that a person can cross the Border and purchase furniture to the value of £52 without paying duty, with the result that——
This is a long question.
Is the Parliamentary Secretary aware that the furniture manufacturers met the Minister on a number of occasions and appealed to him to safeguard——
The Deputy is making a speech, and this is not in order.
Why did the Minister not consider this more favourably?
Mr. Kenny
I am sure the Minister would be able to tell the Deputy better, but I will give him the information I have at my disposal. If VAT on furniture was reduced it would mean that VAT on many other articles would have to be reduced as well. This would mean discrimination against other forms of furniture if VAT was reduced on one category and not on another. For instance, bed clothes, curtains and furnishings generally would have to be reduced. That is why we cannot make fish of one and flesh of another.
Would the Parliamentary Secretary agree that VAT on footwear and clothing was levied at 6.75 per cent while furniture was levied at 19.5 per cent? This seems very strange.
Mr. Kenny
VAT on cutlery, crockery, glassware, household electrical goods, hardware, bicycles, prams, travel goods, briefcases, schoolbags, umbrellas, handbags, stationery and writing materials, soaps, detergents, polishes and toothpaste, will also have to be reduced.
Question No. 2.
Would the Parliamentary Secretary agree that it is not——
I am asking Deputies to co-operate with the Chair today in order to have as many questions as possible orally answered.