Dáil Éireann díospóireacht -
Wednesday, 7 Feb 1979

Vol. 311 No. 4

Financial Resolution No. 2: Value-Added Tax.

Minister for Finance (Mr. Colley)

I move:

(1) That, with effect on and from the 1st day of March, 1979, the rate of value-added tax on radio receiving sets that are of the domestic or portable type or that are of a type suitable for use in road vehicles; and on gramophones, radio-gramophones and record players be increased from 10 per cent, of the amount of value, as the case may be, in respect of which tax is chargeable on those goods to 20 per cent. of that amount and that, accordingly, the Third Schedule to the Value-Added Tax Act, 1972 (No. 22 of 1972), be amended—

(a) by the deletion of "radio receiving sets and" in paragraph (xxix), and

(b) by the deletion of paragraph (xxx).

(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

Mr. P. Barry

Does this resolution relate to the Value-Added Tax Bill that we discussed in Committee a few months ago? Is this merely giving legal effect to this inside the Financial Resolution in relation to that or is it something else?

Mr. Colley

No. This resolution is designed to achieve a reduction in the rate of VAT on radio receiving sets, gramophones, radio-gramophones and record players from the present two-tier charge of 40 per cent to the normal rate of 20 per cent and this would apply from the 1 March next. It applies only to those items that I have mentioned. The Deputy may remember the discussion out of which this arose.

Mr. P. Barry

We had a long discussion on one section of this because it was alleged that these items were coming over the Border and interfering with competition between traders on this side of the Border. Now the people in the South will be on the same level as the people in the North.

Mr. Colley

The levels will be closer than they were.

Question put and agreed to.