Tax Code

Dáil Éireann Debate, Thursday - 1 May 2014

Thursday, 1 May 2014

Questions (50)

Seán Kyne

Question:

50. Deputy Seán Kyne asked the Minister for Finance if, in the context of the rising rate of obesity and the problem of food poverty, consideration will be given to the introduction of a price subsidy for healthy foods to encourage healthy and nutritious diets; if Ireland's membership of the European Union would pose a challenge for this; if such a subsidy is possible; the way it could be structured and applied; and if he will make a statement on the matter. [19850/14]

Written answers

Minister for Finance

I assume the Deputy is referring to the possibility of applying consumer price subsidies to healthy and nutritious foods to incentivise the consumption of those foods. In this regard, I would point out that as Minister of Finance I do not have a role in providing price subsidies to food products. 

However, I do have responsible for taxation policy and the Deputy may be aware that the VAT system already provides for a distinction between different types of foods. While basic foodstuffs, for example, bread, butter, tea, meat, milk and vegetables are subject to the zero rate of VAT, other foods such as sweets, chocolates, chocolate wafers and biscuits, confectionery, crisps, ice-creams and soft drinks are subject to the standard VAT rate of 23%.