Dáil Éireann Debate, Thursday - 3 April 2014
65. Deputy Brendan Griffin asked the Minister for Finance if data exist to show that the 9% reduced rate of VAT for newspapers is helping to sustain and or create jobs in that sector; the actions he proposes to protect jobs in that sector; and if he will make a statement on the matter. [15816/14]
Amharc ar fhreagraThe rate of VAT on newspapers was reduced from 13.5% to 9% in 2011 as part of the Government's Jobs Initiative for a temporary period until end 2013. Tentative figures from the Central Statistics Office suggest that the number of persons employed in the newspaper and book publishing sectors increased from 3,700 in the final quarter of 2011 to about 5,100 in the fourth quarter of 2013, the period over which the lower rate of VAT has applied. However, I am informed by the CSO that caution should be exercised in interpreting this disaggregated data due to their small sample size and therefore high margin of error. The Deputy will be aware that I provided for the retention of the 9% VAT rate on newspapers in Budget 2014 to maintain the growth in this sector and in the wider tourism sector. Under the current Irish VAT rate structure, the application of the 9% rate to newspapers is the lowest allowable VAT rate in accordance with EU VAT law.
