Michael Noonan
Question:89 Mr. Noonan (Limerick East) asked the Minister for Finance the estimated cost in 1991 of the VAT reductions of (a) 1 per cent on the standard VAT rate, (b) 1 per cent on the lower VAT rate.
Written Answers. - Cost of VAT Reductions.
The estimated cost in a full year of a 1 per cent reduction in the 23 per cent and 10 per cent rates of VAT, currently applied, would be IR£65 million and IR£58 million respectively.
It should be emphasised that these are very tentative estimates based on preliminary projections for 1991 which will have to be revised following receipt of the 1990 outturn and further assessment of economic prospects.