Dáil Éireann debate -
Tuesday, 23 May 2000

Vol. 519 No. 5

Written Answers. - Value Added Tax.

Noel Ahern

Question:

152 Mr. N. Ahern asked the Minister for Finance if he will extend, to VAT on ESB, phone or other limited bills, the facility whereby old age pensioners, under the tax allowance exemption limits, are not liable to tax and can currently claim a refund of any DIRT deducted where pensioners have spare tax credit figures, if he will have this proposal examined; and if he will make a statement on the matter. [14424/00]

Minister for Finance (Mr. McCreevy):

The position in this regard is governed by EU VAT law with which Irish law must comply. In general, unregistered persons are unable to claim a refund of VAT. Moreover, EU VAT law requires that VAT apply to telephone, ESB and other utility bills regardless of the status of the users of these services.

For those in receipt of the free telephone rental allowance, this covers the normal two monthly telephone instrument and line rental charges for a standard telephone and also provides up to 20 free call units in each two-monthly billing period. For those in receipt of the free electricity allowance, this covers the normal standing charge and provides 1,500 free units, that is, 200 units per two monthly billing period in the summer and 300 units per two monthly period in the winter. In addition it is possible to use the £5 fuel allowance, which is payable from October to April to cover electricity charges.

The VAT on the telephone instrument and line rental charges, the 20 free call units and the free units of electricity are borne by the Department of Social, Community and Family Affairs.

I have no plans therefore to make any changes on the lines suggested by the Deputy.