asked the Minister for Finance if he will consider a review of the categorisation under the VAT codes in order to help the weaker areas of industry.
Ceisteanna—Questions. Oral Answers. - VAT Payments.
32.
Mr. Kenny
Changes in the taxation codes are generally matters of a budgetary nature and it would be contrary to practice to indicate, in response to a parliamentary question, whether or not taxation changes of a particular kind are under consideration.
Could the Parliamentary Secretary give us any indication that perhaps within the next half hour or hour in this House there may be some relief given to these people?
Mr. Kenny
Before 5 o'clock the Deputy will know as much as I do.
33.
asked the Minister for Finance if he will consider reducing VAT on wallpaper to the same rate as that charged on paint.
Mr. Kenny
As the Deputy will be aware, since the introduction of value-added tax in November, 1972, wallpaper has been liable to VAT at a higher rate than paint. No charge in that regard is contemplated.
I hoped the Parliamentary Secretary would look forward rather than backward. I am convinced that that legislation is faulty. Does the Parliamentary Secretary not agree that when one group of wall covering gets preferential treatment as against another it places a particular factory engaged in wallpaper manufacture in a wrong situation? Would he not agree that the insignificant amount it would cost the Exchequer to give it at the same VAT rating as paint would be nothing as compared with the amount paid to people on the dole and in social welfare? Does he not think he should do something about that?
Mr. Kenny
The Deputy will understand that paint and wallpaper were charged the same VAT rate some years ago and then paint was included in the builders' providers materials at a lesser rate or else they got credit for it when they sent in their receipts. It appears now that they do not use so much wallpaper, that private people use a lot more wallpaper than builders' providers.
That is a lot of whitewash.
Mr. Kenny
That can be used instead of paint.
The Parliamentary Secretary's assistant is waiting to come down the steps.
Would the Parliamentary Secretary accept that to people in Kildare town this is a serious matter? He is in a position to recommend a change that would help to keep people in employment. What does he intend to do about that?
Mr. Kenny
I intend to convey the Deputy's proposals to the Minister for Finance and he will deal with the matter. He has complete jurisdiction over VAT and the changes in VAT. I will convey the Deputy's proposal, which is a very good suggestion, to the Minister and he will look after it for him.
I hope he will treat it with the same courtesy.
The remaining questions will appear on the Order Paper for Tuesday next, 1st July.