I move Financial Resolution No. 4:
(1) THAT—
(a) the rate of value-added tax on goods and services at present chargeable at the rate of 23 per cent (that is to say, taxable goods and services other than those chargeable at any of the rates zero, 10 or 2.3 per cent) be reduced to 21 per cent of the taxable amount or value of such goods and services, and
(b) the rate of value-added tax on certain goods and services at present chargeable at the rate of 10 per cent be increased to 12.5 per cent of the taxable amount or value, as the case may be, in respect of which tax is chargeable in relation to those goods and services, and
that, accordingly, the Value-Added Tax Act, 1972 (No. 22 of 1972), be amended in subsection (1) of section 11 (inserted by the Finance Act, 1985 (No. 10 of 1985))—
(i) by the substitution, in paragraph (a), of "21 per cent" for "23 per cent" (inserted by the Finance Act, 1990 (No. 10 of 1990)), and
(ii) by the substitution of the following paragraph for paragraph (c):
"(c) (i) 10 per cent of the amount on which tax is chargeable in relation to the supply of goods or services of a kind specified in paragraphs (ii), (iii), (iv), (v), (x), (xi), (xig) and (xii) of the Sixth Schedule,
(ii) 12.5 per cent of the amount on which tax is chargeable in relation to the supply of goods or services of a kind specified in the Sixth Schedule other than those to which subparagraph (i) of this paragraph relates, and".
(2) THAT this Resolution shall have effect as on and from the 1st day of March 1991.
(3) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
This resolution provides for a reduction in the standard rate of VAT from 23 to 21 per cent and an increase in the rate on the supply of certain goods and services from 10 per cent to 12.5 per cent. The changes will take effect from 1 March 1991.