Departmental Expenditure

Dáil Éireann Debate, Tuesday - 6 December 2011

Tuesday, 6 December 2011

Questions (30)

Michael McGrath

Question:

30 Deputy Michael McGrath asked the Minister for Finance the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38463/11]

Written answers

Minister for Finance (Deputy Michael Noonan)

The estimated cost of a 2% increase in the standard rate of VAT, using 2010 as a reference year, is €158,000. Since the establishment of the Department of Public Expenditure in July 2011, my Department has operated a shared service arrangement with that Department in respect of certain goods and services acquired by one, or other, of the Departments. The estimate supplied covers the two Departments.