Dáil Éireann Debate, Wednesday - 3 March 2021
223. Deputy Catherine Murphy asked the Minister for Finance the amount of value added tax collected from the 9% rate to date since its reintroduction; and the amount forgone since the reintroduction of the 9% rate. [11970/21]
View answer224. Deputy Catherine Murphy asked the Minister for Finance the amount of value added tax forgone since the standard rate of 23% was reduced to 21%; and if he has conducted a cost-benefit analysis in respect of the reduction. [11971/21]
View answerI propose to take Questions Nos. 223 and 224 together.
The temporary reduction of the VAT rate on tourism and hospitality in Budget 2021 was projected at that time to cost €336m. The temporary reduction in the standard rate of VAT announced in the July Stimulus was projected to cost €440m.
I am advised by Revenue that it is not yet possible to separately report the amount of tax collected at different VAT rates since these changes, or the actual amount foregone. Regular VAT returns, usually filed by trader every two months, do not report collection by VAT rate.
The Revenue Ready Reckoner published at https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf contains, on page 28, the most current estimates of the likely cost foregone from various changes to VAT rates or extensions to the current rates. These are the best available estimates but clearly are sensitive to change due to ongoing impacts of the COVID-19 pandemic.
