Dáil Éireann Debate, Tuesday - 6 December 2022
619. Deputy Colm Burke asked the Minister for Health if consideration will be given to the extension of the 0% VAT rate that currently applies to certain oral medicines to non-oral medicines, including injections, infusions, liniments, ointments and transdermal patches, which would be in line with the programme for Government commitment (details supplied); and if he will make a statement on the matter. [60599/22]
Amharc ar fhreagraThe Tax Strategy Group Paper on Value Added Tax (VAT) published in July 2022 noted that Ireland could extend the zero VAT rate that currently applies to certain oral medicines to non-oral medicines also. Non-oral medicines include injections, infusions, liniments, ointments, and transdermal patches. The estimated cost of extending the zero VAT rate to all forms of non-oral medicines would be approximately €145 million per annum.
As announced in Budget 2023, the VAT rate for non-oral forms of Hormone Replacement Therapy (HRT) and non-oral forms of Nicotine Replacement Therapy (NRT) will be reduced to zero from 1 January 2023. This will reduce the cost of non-oral forms of HRT and NRT medicines for all those who need them.
The proposal to extend the zero VAT rate to all forms of non-oral medicines, or to additional sub-categories of non-oral medicines beyond those announced in Budget 2023, must be considered in the context of other competing health priorities and the available budget.
It is also important to note that the chief consideration for the Department of Health in making any such requests to the Minister for Finance is the benefit to public health.
