Neale Richmond
Question:222. Deputy Neale Richmond asked the Minister for Finance if he plans to extend the VAT reduction from 23% to 21% that is due to end on 28 February 2021; and if he will make a statement on the matter. [4201/21]
View answerWednesday, 27 January 2021
Questions (222, 230, 234)
Fergus O'Dowd
Question:230. Deputy Fergus O'Dowd asked the Minister for Finance if he will respond to a query raised in correspondence (details supplied) in relation to a further extension of VAT for the motor trade industry given the ongoing economic damage caused by Covid-19; and if he will make a statement on the matter. [4357/21]
View answer
Gerald Nash
Question:234. Deputy Ged Nash asked the Minister for Finance the cost implications of extending the reduction in VAT from 23% to 21% for six months beyond February 2021; if he is considering this step; and if he will make a statement on the matter. [4386/21]
View answerWritten answers
I propose to take Questions Nos. 222, 230 and 234 together.
I do not plan on extending the temporary reduction from 23% to 21% in the standard rate of VAT beyond the end of February.
In terms of estimating the cost of such a measure, Revenue provides a ‘Ready Reckoner’ on its website at link;
https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
that facilitates the estimation of the yield or cost of potential changes to the tax code.
The ‘Ready Reckoner’ includes (on page 28) the estimated cost of extending the reduction in the standard VAT rate from 23% to 21% for a full year and for the remainder of 2021 (among other information which may be of interest to the Deputy). The cost of extending the reduced 21% standard VAT rate for six months, to the end of August 2021, is estimated to be approximately €445 million.