Dáil Éireann debate -
Thursday, 3 Mar 1994

Vol. 439 No. 7

Written Answers. - Local Authority Funding.

Thomas P. Broughan

Question:

58 Mr. Broughan asked the Minister for Finance the effect on national finances of transmitting 1 to 4 per cent of VAT directly to the local authorities, or alternatively of allowing local authorities to levy a small sales tax on the size of the rate support grant plus their current service charges on householders.

Minister for Finance (Mr. B. Ahern)

Assuming that the Deputy's proposal is intended to provide additional funding to that currently provided by the Exchequer, each one percentage point of VAT receipts transferred to local authorities would cost in the order of £25 million annually. The introduction of new sales taxes would be contrary to EU VAT law.