Tax Code

Dáil Éireann Debate, Wednesday - 21 September 2011

Wednesday, 21 September 2011

Ceisteanna (32)

Ciara Conway

Ceist:

32 Deputy Ciara Conway asked the Minister for Finance his views on removing, or reducing, the rate of VAT payable by the Irish newspaper industry, in the context of increasing pressure on the sector due to falling revenue from advertising, and falling circulation due to increased competition from the Internet; his further views on this measure in the interests of preserving jobs and recognising the importance of the fourth estate in a democracy; and if he will make a statement on the matter. [25349/11]

Freagraí scríofa

Minister for Finance (Deputy Michael Noonan)

I would draw to the Deputy's attention that the VAT rate on newspapers was reduced from 1 July 2011 in the Finance (No. 2) Act 2011 from the reduced rate of 13.5% to the new lower reduced rate of 9%. The new 9% rate applies to printed matter such as brochures, maps, programmes, leaflets, catalogues and newspapers. Books are not included in the 9% rate as they already are subject to VAT at the zero rate. The 9% VAT rate was introduced primarily in relation to services operated in the tourism sector as a means to boost that industry. As such printed matter is relevant to tourism, and EU legislation allows for such a reduction, it was decided to include printed matter among those items to which the new lower reduced rate will apply.

This VAT reduction was welcomed in general by the print media.