asked the Minister for Finance if he will give an estimate of the tax yield in 1983 from each of the rates of VAT.
Ceisteanna—Questions. Oral Answers. - VAT Yields.
8.
The estimated tax yield in 1983 from the rates of VAT is as follows: the 5 per cent rate is expected to yield £32.9 million; the 18 per cent rate, £273.1 million; the 23 per cent rate, £623.3 million; the 30 per cent rate, £61.7 million and the 35 per cent rate, £140.7 million. Deputies will appreciate that the 18 per cent and the 30 per cent rates will be in force for part of the 1983 year.
Will the Minister give the total figure?
The total figure is £1,131.7 million. That is the post-budget estimate.
In view of the fact that the quarterly returns from VAT indicate that nearly 26 per cent of the yield he has projected has been realised, will the Minister not agree that the estimates are too low? Before the impact of the VAT increases has begun to bite, the first quarter returns indicate that 26 per cent of the projected figures have been realised already.
That may be so in which case the question the Deputy has asked now is not consistent with a question he asked a few moments ago.
I am talking about VAT.
The statement issued with the first quarter returns shows that a number of factors have to be taken into account in judging what the 26 per cent means in terms of forecasting for a full year. For example, we have there a full quarter in this year when VAT at point of entry applies which did not apply during the first quarter of last year. There are a number of factors of that kind that have to be taken into account in judging the precise meaning of the 26 per cent in the first quarter.
Does the Minister not see there is a significant difference between VAT and excise duties? My questions have not been inconsistent. The Minister said yesterday that extra expenditure this year in Departments such as the Department of Health and devaluation consequences would not upset the overall budget arithmetic. Was that because he expects to get more from VAT than he projected at the beginning of the year? Otherwise, is it not true that the overall budgetary arithmetic will be upset?
As far as the latter question is concerned, I answered it yesterday. It does not arise on the subject matter of this question. The Government's concern is to ensure that budgetary targets will be met and to the extent that there is a shortfall on the one side or an excess on the other side, appropriate action will be taken to ensure that the targets are adhered to.
Will the Minister tell us about that kind of action?
I am calling Question No. 9.