Mary Hanafin
Question:102 Ms Hanafin asked the Minister for Finance the plans, if any, he has to remove value added tax at 21% from drugs not taken orally; and if he will make a statement on the matter. [23766/99]
Written Answers. - Pharmaceutical Products.
EU law permits reduced rating of pharmaceutical products of a kind normally used in health care, prevention of diseases and treatment for medical and veterinary purposes, including products used for contraception and sanitary protection.
The position is that while oral medicines are zero rated here for VAT purposes, standard rating applies to non-oral medicines, for example, injections and ointments as well as items such as incontinence pads, condoms, bandages and syringes. Applying the 12.5% reduced rate would cost £9.8 million, while a 5% rate would cost £18.5 million in a full year.
This issue will as usual be considered in the context of the forthcoming budget.