Dáil Éireann Debate, Wednesday - 10 March 2021
267. Deputy Cian O'Callaghan asked the Minister for Finance the estimated cost of the standard VAT rate being reduced from 23% to 21% for a six month period from 1 September 2020 to 28 February 2021; if an analysis of this policy decision is being carried out; and if he will make a statement on the matter. [12512/21]
View answerThe temporary reduction in the standard rate of VAT to 21% announced in the July Stimulus Package was projected to cost €440m.
I am advised by Revenue that it is not yet possible to calculate the actual cost foregone as VAT tax returns, which are usually filed by traders 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 and are sensitive to change due to ongoing impacts of the COVID-19 pandemic.
