I propose to take Questions Nos. 78 to 80, inclusive, 86, 88 and 89 together.
As the deputies will be aware the EU Commission published a proposal on the reform of VAT rates in January 2018 which would allow Member States more flexibility in how they apply VAT rates. The compromise text agreed at ECOFIN in December has been amended significantly in comparison to the original proposal so the EU Parliament will once again be consulted for their opinion.
Once the Parliament has issued its opinion on the proposal, the Council will formally adopt the directive. Once the directive has been adopted it will be published in the Official Journal of the European Union and, in line with the text of the proposal will enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. If the text remains unchanged, the transposition required by the proposal must be completed by 31 December 2024.
However, even without this transposition, Member States may rely on the proposal to amend their VAT Rates from when it enters into force, on the twentieth day following its publication in the Official Journal of the European Union.
Officials in my Department will be reviewing the options now available to Ireland in setting VAT rates alongside their colleagues in Revenue. Future tax changes are generally taken in the context of the Budget. Deputies will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the budgetary process, alongside a wide range of submissions from various stakeholders and lobby groups.