Dáil Éireann díospóireacht -
Wednesday, 31 Jan 1990

Vol. 395 No. 1

Financial Resolution No. 3: Excise — Televisions.

The Taoiseach

I move Financial Resolution No. 3:

(1) That the duty of excise on televisions imposed by paragraph 5 (1) of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979), shall be charged, levied and paid, as on and from the 1st day of February, 1990, in accordance with the Schedule to this Resolution in lieu of the Schedule to the Imposition of Duties (No. 274) (Televisions) Order, 1985 (S.I. No. 41 of 1985).

(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).

SCHEDULE

Rates of Excise Duty on Televisions

Description of Televisions	Rate of Duty
Colour televisions: with a screen the maximum dimension of which exceeds seventeen inches and does not exceed twenty-four inches	£30 the television
Colour televisions: with a screen the maximum dimension of which exceeds twenty-four inches	£45 the television

Because we are so short of time I will just move these resolutions without any explanation and if there are any questions I will deal with them.

Mr. Dukes

Resolutions Nos. 3, 4 and 5 deal with reductions in excise on televisions, video players and gramophone records and, of course, I would not for a moment oppose these moves. I want to ask the Taoiseach if any arrangements have been made to take account of the difficulties of traders, if this is regarded as a problem, who hold stocks of these products which have been bought at the existing high rate of duty and who, because these resolutions will come into effect on 1 February, will be selling them at the lower rate of duty.

I remember on a previous occasion when we reduced the excise duty on televisions there was a problem for those in the trade, particularly for those in the rental business, which had to be met. I am glad to say we were able to work out an arrangement at that time which, althought not perfect, suited everybody and did not create any difficulties. This involved a fairly delicate arrangement to make sure that traders, and in particular those in the rental business, did not get caught out. I suspect that that problem still exists in relation to television sets. The problem would certainly not be as big in relation to video players and gramophone records but nevertheless there is a problem for the people who bought stocks at the high excise duty and who will dispose of them after the reduction. I should like to know if any measures are being taken to get over this difficulty.

The Taoiseach

Do other Deputies have any questions?

Mr. McCartan

No.

The Taoiseach

The only thing I can say by way of a broad general reply is that the changes these three resolutions will bring about will be in favour of the legitimate traders and whatever about short-term losses they will gain over a period of time. The partial reduction in excise on televisions is to take account of the concern the trade have about stocks on hand if the duty was fully abolished. The trade would be concerned if the duty was abolished fully and to a large extent the partial reduction is in easement of the position of those who have stocks. These traders will gain very quickly because these three resolutions will be in aid of the legitimate traders as distinct to those who smuggle stock. The whole exercise is to help legitimate traders against those who smuggle stock.

Mr. Dukes

I appreciate that but I will be more specific because this is a particular corner of the problem. People involved in the television rental business pay the appropriate rate of excise duty on television sets at the time of purchase and the price at which they rent out those televisions to customers clearly reflects the price they originally paid for them and the excise duty content. If during the course of the rental the excise duty is decreased then a legitimate trader who has rented out stock which he has had for some years is at a disadvantage as against another legitimate trader who bought his stock when the excise duty was reduced. I want to know if any consideration has been given to that problem and if any measures have been taken to ease it. When we reduced the excise duty on a previous occasion it was regarded as a very substantial problem in the eyes of the trade.

The Taoiseach

The problem would be worse if we were dealing with a full abolition of the excise duty but it is only a partial abolition.

Mr. Dukes

The last one was a partial abolition also.

The Taoiseach

This matter can be looked into but, as I have said, these changes are being made in response to representations from the trade.

Question put and agreed to.