Thomas P. Broughan
Question:71. Deputy Thomas P. Broughan asked the Minister for Finance the amount it would cost to the Government to lower the rate of value-added tax by each 1% point from 23% to 17%. [12401/15]
View answerThursday, 26 March 2015
Questions (71)
Written answers
I am advised by the Revenue Commissioners information on estimated costs of VAT rate changes can be found in the post-Budget 2015 Ready Reckoner: http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf. While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated broadly on a pro-rata basis with those displayed in the Reckoner. The cost of lowering the 23% VAT rate by 1% is estimated to be €275 million. Further decreases can be estimated on a straight line basis, where the cost of the additional 1% is added to the cost of the preceding 1% reduction estimate.