Written Answers. - Native Firewood and VAT.

Ned O'Keeffe

Question:

49 Mr. E. O'Keeffe asked the Minister for Finance if he will exempt native firewood from VAT payment in order to encourage its use on a wider scale. [7969/96]

The position is that, in common with all ohter solid fuels, firewood is subject to the reduced rate of VAT of 12.5 per cent.

It would not possible for me to introduce an exemption or new zero rate for firewood as this would be contrary to EU VAT law.

Furthermore, I must point out to the Deputy that the application of any taxation measures which favoured domestic products over those of other member states would be forbidden by the Treaties.