Vol. 517 No. 3
159 Mr. Yates asked the Minister for Finance the proposals, if any, he has to introduce 21% VAT on postal services; and if he will make a statement on recent suggestions in this regard emanating from the EU Commission spokespersons in Brussels. [9842/00]
I have no plans at present to introduce VAT on postal services. I understand that the Commission is making proposals in relation to VAT on postal services at the end of April and this may involve removing the current VAT exemption for postal services.
The Commission has made remarks suggesting that competitive distortions may arise from the current treatment of postal services vis-à-vis courier services and privately operated postal services where VAT applies. The Commission's proposals have not yet been adopted by the commission and are not available. I will await them before considering the issue further.
