Tax Code.

Dáil Éireann Debate, Thursday - 3 December 2009

Thursday, 3 December 2009

Ceisteanna (72)

Aengus Ó Snodaigh

Ceist:

69 Deputy Aengus Ó Snodaigh asked the Minister for Finance the cost to the Exchequer if the standard rate of VAT was reduced by 1%; and the impact on the cost of living as a result of a decrease in VAT. [44902/09]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

The estimated full year cost to the Exchequer of reducing the 21.5% standard rate of VAT by 1 percentage point is €334 million. This would impact on inflation by reducing the Consumer Price Index by 0.36%.