VAT Rate Reductions

Dáil Éireann Debate, Wednesday - 15 October 2014

Wednesday, 15 October 2014

Questions (20)

Thomas P. Broughan

Question:

20. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer of decreasing the higher rate of VAT from 23% to 22% and 21%, respectively; and the cost of decreasing the lower rate of VAT from 13.5% to 12.5%. [39352/14]

Written answers

Minister for Finance

Decreasing the higher rate of VAT from 23% to 22% would cost the Exchequer €271 million in a full year, while a decrease from 23% to 21% would cost €542 million.  Decreasing the 13.5% rate of VAT to 12.5% would cost the Exchequer €246 million in a full year.

Question No. 21 answered with Question No. 18.