Dáil Éireann Debate, Tuesday - 5 April 2022
246. Deputy Pat Buckley asked the Minister for Finance if his Department will consider lowering the VAT rate to 0% on the sale and repair of bicycles and electric bicycles; if his Department will follow the lead of Belgium which has already passed legislation to take advantage of European rule changes; and if he will make a statement on the matter. [17838/22]
View answerI understand that the proposal for reform of VAT rates is currently being finalised, this process involves, inter alia, ensuring consistent translations of the text in every working language of the European Union. Once finalised, I expect the proposal will be published in the Official Journal of the European Union in the coming weeks.
Officials in my Department are currently reviewing the options now available to Ireland in setting VAT rates. This will include consideration of the new options available to Member States when setting VAT rates as well as the new limitations introduced on how reduced rates may be applied.
Decisions about tax changes are generally taken in the context of the Budget and, as part of our normal annual Budget preparations, various options for tax policy changes will be considered by the Tax Strategy Group prior to Budget 2023. The papers presented to the Tax Strategy Group, including a paper on VAT, are published in advance of the Budget.
