Dáil Éireann debate -
Tuesday, 15 Nov 1994

Vol. 447 No. 1

Ceisteanna—Questions. Written Answers. - VAT on Third World Imports.

Richard Bruton

Question:

99 Mr. R. Bruton asked the Minister for Finance if he will consider VAT at the point of entry for fair trade organisations who are members of the International Federation for Alternative Trade so as to ease the burden on craft-type imports coming from Third World countries. [3266/94]

Eamon Gilmore

Question:

101 Mr. Gilmore asked the Minister for Finance if he has received representations from a company (details supplied), which imports fairly traded products from poor countries, concerning the operation of VAT at the point of entry; the plans, if any, he has to change the operation of VAT charging; and if he will make a statement on the matter. [3358/94]

Minister for Finance (Mr. B. Ahern)

I intend to take Questions Nos. 99 and 101 together.

I can confirm that I have received representations from the company in question seeking relief from the obligation to pay VAT at the point of entry on certain imports from developing countries. However, the position is there is no provision under Irish VAT law whereby such concessionary treatment could be granted to particular companies or categories of goods. The complete abolition of VAT at point of entry would be required in order to provide the type of concession being sought. Because of the very significant cash-flow loss to the Exchequer which would be involved, this course of action could not be contemplated in present budgetary circumstances.