Vol. 567 No. 5
205 Mr. R. Bruton asked the Minister for Finance the Government's views on the proposal to impose VAT on postage; if his attention has been drawn to concerns in the voluntary and charitable sector of the impact of such a measure on their activities; and if he will make a statement on the matter. [14255/03]
A proposal was made by the European Commission earlier this month to amend the VAT treatment of public postal services and postage stamps. The proposal is made in the context of European Commission concerns about potential distortions in the marketplace because of the different VAT treatment of public and private services. The potential effects of this proposal on the public postal sector and public postal services is being examined in my Department and in the Office of the Revenue Commissioners. If the draft directive, as proposed by the European Commission, was agreed, one of the potential effects would be the imposition of a positive rate of VAT on public postal services. This would impact on all who cannot recover VAT, including the general public, financial institutions and charities and voluntary organisations. I have received correspondence from the voluntary and charitable sector in this regard and I understand its concerns. I will take these views into account when the proposed directive is being examined at EU level.
