asked the Minister for Finance if he will consider the removal of VAT on natural gas supplies to those pensioners who now depend on natural gas for cooking and heating, and who are suffering financial hardship due to this dependence, compared to those pensioners who cook and heat by electricity and receive their energy supply at a subsidised price.
Written Answers. - Removal of VAT on Natural Gas.
150.
I presume that in speaking of subsidised electricity prices, the Deputy is referring to the free electricity scheme for certain pensioners. There is also a free bottled gas scheme and this gas, in common with natural gas and most other non-road fuels, is liable to VAT at the 10 per cent rate. VAT applies to all supplies of natural gas at this rate regardless of the status of the purchaser. Only in this way can the tax operate efficiently and effectively. The VAT system is not an appropriate tool for achieving what the Deputy has in mind and it would not be feasible to introduce a tax concession in the manner requested.