asked the Minister for Finance if he is aware that the wholesale tax which is charged at retail level is in excess of the original tax charged at wholesale level; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Wholesale Tax.
115.
Wholesalers who are accountable for wholesale tax are chargeble at the rate of 5 per cent on their receipts from wholesale sales. The tax is levied on the total amount received, including any additions to prices made for tax; and the wholesaler would, therefore, have to increase his pre-tax prices by approximately 5¼ per cent to recoup him for his tax liability. The increase may be passed on to the retailer as part of the price charged; and, subject to the price control arrangements, the retailer may adjust his prices to recover his increased costs.
I am not aware of any excessive price increases which are attributable to wholesale tax. If the Deputy has evidence of any such increase he should bring it to the attention of the Department of Industry and Commerce.