Michael Healy-Rae
Ceist:142. Deputy Michael Healy-Rae asked the Minister for Finance if the VAT rate can be reduced to 20% (details supplied); and if he will make a statement on the matter. [33537/17]
Amharc ar fhreagraWednesday, 12 July 2017
Ceisteanna (142)
Freagraí scríofa
The OECD, in its hierarchy of taxes, state that taxes on property and consumption are less harmful to economic growth than personal and corporate taxes. A reduction in the standard VAT rate from 23% to 20% would cost the Exchequer €1.23 billion in a full year.
I would point out that, as of 1 January 2017, 23 of the 28 EU Member States have a standard VAT rate of 20% or higher and the average standard rate in the EU is 21.5%. While Ireland's standard VAT rate is higher than the average rate, six Member States apply standard rates higher than 23% and 2 other Member States also apply a rate of 23%. Furthermore, the standard rate VAT differential between Ireland and the UK has narrowed from a high of 6.5 percentage points in 2009 to 3 percentage points since January 2012.