asked the Minister for Finance the estimated cost of zero-rating VAT on newspapers; and the estimated cost of reducing VAT on newspapers to (a) 5 per cent and (b) 8 per cent.
Written Answers. - VAT on Newspapers.
256.
The estimated full year cost of applying the zero, 5 per cent, or 8 per cent rate of VAT to newspapers instead of the present 23 per cent rate is respectively, £20½ million, £16 million and £13½ million. Zero-rating would be affected by constraints of obligations of EC membership.
The Deputy will be aware of the Government's commitment in it's plan Building on Reality to reduce the rate of VAT on newspaper sales.