Niall Collins
Question:20 Deputy Niall Collins asked the Minister for Finance his estimate of the impact on VAT receipts of the planned reduction in June in the lower rate of VAT from 13.5% to 12%. [5422/11]
View answerDáil Éireann Debate, Wednesday - 23 March 2011
20 Deputy Niall Collins asked the Minister for Finance his estimate of the impact on VAT receipts of the planned reduction in June in the lower rate of VAT from 13.5% to 12%. [5422/11]
View answerThe Government has committed in the Programme for Government, to lower the 13.5% reduced rate of VAT to 12% up to the end of 2013. It is intended that this VAT reduction will be undertaken within the first 100 days of office as part of a series of measures to resource a Jobs Fund.
It is estimated that a reduction of 1.5% in the reduced VAT rate would cost €353 million in a full year. If the proposed VAT reduction is introduced on 1 June 2011 it is estimated that this would reduce VAT receipts by €147 million this year.