asked the Minister for Finance if his Department have any plans to review the levels of taxation on electrical goods and thereby redress the differentials which exist between this State and Northern Ireland; if his attention has been drawn to the fact that 16,000 brochures advertising televisions and videos were distributed in County Louth through the medium of publicity post urging people to buy these goods in Northern Ireland; if VAT was paid on these brochures; whether these goods as advertised and when sold will be smuggled into this State to the detriment of the traders in the Border area and the loss of revenue to the State and the effect on employment; whether this is another manifestation of the problem arising from high excise rates on televisions and videos and whether he is aware that smuggling will continue until such time as excise duty is removed and tax harmonisation is achieved between this State and the United Kingdom; and if he will make a statement on the matter.
Written Answers. - Border Smuggling.
Levels of taxation are kept under review in the annual budgetary context. However, the scope for reductions in tax rates is totally dependent on the overall state of the public finances. The Deputy will be aware of the major constraint that this represents in current circumstances.
With regard to the circulation of brochures in County Louth I have been informed that 5,000 photocopied leaflets were distributed through publicity post in County Louth. The person or persons who photocopied these would not have a VAT liability on them. No information is available to me on any other leaflets.
I have no view on what will happen the goods in question when sold. It is a matter of conjecture as to who will buy the goods and as to their ultimate location. The Customs and Excise staff will, of course, be vigilant to ensure that legal travellers' allowances are not exceeded and that attempts to smuggle goods are defeated.
With regard to tax harmonisation developments on this front will take place in the context of the recent EC Commission proposals to abolish fiscal frontiers. It is axiomatic that if tax rates in neighbouring states are equalised taxbased smuggling would cease.