Vol. 480 No. 2
145 Mr. N. Ahern asked the Minister for Finance the highest standard rate of VAT which existed and the dates on which it decreased from 25 per cent, 23 per cent and so on; and if adult footwear was always in this standard category. [13405/97]
The highest general rate of VAT which existed was 35 per cent which reached this level on 1 March 1983. A fundamental restructuring of the rate system took place with effect from 1 March 1985 resulting in the elimination of this rate and the goods and services which had previously been chargeable at this rate became liable at 23 per cent. The 23 per cent rate was increased to 25 per cent with effect from 1 March 1986 and remained so until 1 March 1990 when it was reduced again to 23 per cent. It was further reduced to 21 per cent with effect from 1 March 1991 and has remained at that rate since then. This is now the standard rate.
Adult footwear, previously liable at the zero rate, became liable to a positive rate of VAT on 1 March 1985 at the reduced rate of 10 per cent. This rate was increased to 12.5 per cent for a wide range of items, including adult footwear, with effect from 1 March 1991. The rate was further increased to 16 per cent with effect from 1 March 1992 for a wide range of items, again including adult footwear.
On 1 March 1993, the 16 per cent was removed and a number of items including adult footwear, became taxable at 21 per cent, that is the standard rate.
