Dáil Éireann Debate, Thursday - 18 September 2014
78. Deputy Brendan Griffin asked the Minister for Finance his views on taxation policies in budget 2015 to assist job retention and creation in the construction industry, such as the application of a 9% rate of VAT for the construction of residential properties; and if he will make a statement on the matter. [34949/14]
Amharc ar fhreagraIt is not the practice to comment on what measures may or may not be introduced in advance of the Budget.
However, as you are aware, under EU and Irish VAT law while it is possible to apply the 9% VAT rate to construction of residential property, historically the same VAT rate applies to all construction in Ireland. I have no plans to apply different VAT rates to different construction services as this would lead to administrative complications and could lead to tax abuse. In addition, any reduction in the rate of VAT would come at a cost to the Exchequer.
