Vol. 452 No. 8
96 Mr. Haughey asked the Minister for Finance if he will remove VAT on adult clothing and footwear in view of the job losses in the industry and the number of businesses closing down: and if he will make a statement on the matter. [8664/95]
I am precluded by EU VAT law from removing VAT from adult clothing and footwear. It would be possible, under EU rules, to apply a reduced rate to adult clothing and footwear, provided it is not less than 12 per cent. Our current reduced rate is 12.5 per cent; if applied to adult clothing and footwear, the estimated cost to the Exchequer would be £84 million in a full year. Given this very significant budgetary impact, I have no plans to reduce the VAT rate on adult clothing and footwear.
