Denis Naughten
Question:197 Mr. Naughten asked the Minister for Finance the plans, if any, he has to reduce the 21% VAT on telephone bills for old age pensioners; and if he will make a statement on the matter. [26125/99]
Written Answers - VAT Payments.
VAT law in Ireland is governed by EU VAT law. The EU Sixth VAT Directive requires that VAT apply to telephone services regardless of the status of the users of these services. Therefore, it is not open to me to remove VAT from telephone services used by any particular category such as old age pensioners.
However, pensioners and others in receipt of the free telephone allowance do not pay VAT on the rental units which are the subject of the allowance because the VAT is paid by the Department of Social, Community and Family Affairs.