asked the Minister for Finance the reason the turnover thresholds for compulsory VAT registration have risen by 50 per cent for traders supplying goods and 66? per cent for traders supplying services since VAT was introduced in 1972, whereas the Consumer Price Index has risen by 212 per cent in the same period; and if he will provide for substantial increases in the thresholds in the Finance Bill.
Ceisteanna—Questions. Oral Answers. - VAT Threshholds.
2.
Turnover thresholds for compulsory VAT registration were last increased in 1979. They had not previously been increased since their introduction in 1972. A number of factors, apart from the increase in the price index, are relevant to the determination of thresholds. The competitive advantage to unregistered traders at the threshold increases with the threshold level, and the increases since 1972 in the positive rates of VAT reinforce this advantage. In all the circumstances, a further increase is not considered to be warranted this year in the thresholds which are already generous by EEC standards.
Would the Minister agree that there has been a very big divergence between the rate of increase in the threshold which is nearly 66 per cent since 1972 as against the rate of inflation which has been 212 per cent? Would the Minister agree at least to have a look at this in the context of the preparation of the Finance Bill?
I accept what the Deputy has said and I will have a look at his suggestion.