Dáil Éireann Debate, Thursday - 20 October 2016
83. Deputy Róisín Shortall asked the Minister for Finance the likely loss of excise duties and VAT in 2017 for scenarios (details supplied) arising from the current and ongoing weakness in sterling and the methods used to calculate the response to the scenarios. [31257/16]
View answerI am informed by Revenue that the estimated losses of Excise duties and VAT for the scenarios supplied are shown in the following table. These estimates reflect reductions for alcohol and tobacco but do not include the vehicle element outlined by the Deputy. I am advised by Revenue that given the potential variation in reaction of consumers in response to a displacement of car purchases, it is not possible to reliably predict a cost for this element of the scenario.
|
Excise |
VAT |
Total |
|
|
Loss |
Loss |
|
|
|
€m |
€m |
€m |
|
|
Scenario A |
315 |
201 |
516 |
|
Scenario B |
As per Scenario A |
||
|
Scenario C |
352 |
230 |
582 |
In estimating the above scenarios, it is assumed that the decline in sales of alcohol and tobacco in the Republic is not replaced by any other purchases, resulting in a complete loss of both VAT and Excise duties to the Exchequer on those sales. These estimates are based on the Excise forecast in Budget 2017. As a significant proportion of receipts are yet to be collected in 2016, the allocation of this forecast across the different commodity types may be subject to revision.
