asked the Minister for Finance if he is considering the introduction of purchase tax in order to offset the loss of revenue from the reduction of protective tariffs.
Ceisteanna—Questions. Oral Answers. - Purchase Tax.
23.
As I indicated in my Budget statement on 10 April last, our receipts from protective customs duties will dwindle as our tariffs on imports from Member States of the EEC are reduced and accordingly fresh sources of revenue must be sought to make good these losses. In view of this and of the importance which the EEC attaches to the question of harmonising the taxation systems of the Member States, all of which have general sales taxes or turn-over taxes of one sort or another, the Revenue Commissioners are, at my request, examining the technical questions which would be involved in the adoption of various forms of broadly based taxes on expenditure.
The Government have not yet, however, taken a decision as to which, if any, of these would be suitable.
Could the Minister say what is the estimated loss to revenue for a year by reason of the reduction of ten per cent?
I could not give an estimate at all—none at the moment.
The Minister for Industry and Commerce thinks there may be, according to the speech he made to the Soroptimists Club.
I made no such reference at all.