Ned O'Keeffe
Question:94 Mr. E. O'Keeffe asked the Minister for Finance the amount of VAT taken each year from research journals; and if he will reduce the VAT rate of 21 per cent on Irish journals which is the highest in the EU. [2043/97]
Written Answers. - Tax Yield.
I am informed by the Revenue Commissioners that VAT returns are not completed in a manner which would enable the yield from particular goods or services to be identified.
However, the VAT yield from sales of periodicals — other than general news-oriented ones which are taxed at the reduced rate of VAT, 12.5 per cent — is estimated at £2.1 million for 1996 and the projected yield in 1997 is £2.3 million. These figures include the estimated yield from sales of research journals which cannot be isolated.
I have no plans to reduce the VAT on research journals which are liable for VAT at the standard rate of 21 per cent.
With regard to the comparison made by the Deputy in relation to other member states, I am advised by the Revenue Commissioners that three member states apply a higher rate to the sales of periodicals than Ireland viz Denmark 25 per cent, Sweden 25 per cent and Finland 22 per cent. In addition, I wish to point out that Irish libraries, universities and similar bodies purchasing these journals also benefit from the zero rating of books, which is not generally available in other EU countries.
Finally, 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.