Vol. 539 No. 1
196 Mr. C. Lenihan asked the Minister for Finance if he will consider giving some form of tax relief or VAT relief for teachers who buy computers for their home and which will have a benefit for their work in school. [18715/01]
In general teachers are non-taxable persons for the purposes of VAT law. This means that they cannot recover VAT on any purchases they make, including the purchase of computers. Any general VAT refund scheme along the lines suggested by the Deputy would be considered as zero rating. Under the EU Sixth VAT Directive, member states may retain the zero rates they had in place on 1 January 1991, but they are prohibited from introducing new zero rates.
I have no plans to introduce any tax relief for the purchase of computers. As you will appreciate, as Minister for Finance, I receive numerous requests, many from very worthwhile causes, for the introduction of new tax reliefs. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
