Dáil Éireann debate -
Wednesday, 3 Jul 1991

Vol. 410 No. 3

Written Answers. - Taxation Matters.

Jimmy Deenihan

Question:

41 Mr. Deenihan asked the Minister for Finance if he will make a special concession to a voluntary group in County Kerry, set up to purchase a gall bladder machine for Tralee General Hospital, regarding the payment of 25 per cent VAT.

Minister for Finance (Mr. A. Reynolds):

As the Deputy has not provided full details of the case in question, I cannot give him a definitive response to his query.

I would point out that a special VAT refund scheme is already in operation for medical equipment purchased through voluntary subscriptions. Under the terms of the existing scheme, voluntary groups are granted partial refunds of VAT in respect of individual items of equipment which must be certified as being necessary in the running of the health services and are of a tax-exclusive cost of £20,000 or more.

I am having the scheme reviewed at the moment but the Deputy will appreciate that, in order to avoid a disproportionate administration cost, a realistic threshold is necessary.

The refund scheme was established in recognition of the valuable work done by voluntary fund-raising groups, who raise significant amounts of money to finance purchases of specialised health equipment.