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Health Committee Chairman calls for end to VAT refunds on below cost sales

1 Noll 2011, 16:50

The Chairman of the Oireachtas Committee on Health and Children, Jerry Buttimer TD, has called for immediate action to prevent VAT being reclaimed by retailers selling alcohol below cost price.

The Committee Chairman made the call following a meeting with representatives of the National Off-Licence Association and Mature Enjoyment of Alcohol in Society Limited (MEAS).

Deputy Buttimer said: “The issue of below cost selling of alcohol was again raised at today’s meeting of the Oireachtas Health Committee. The National Off-Licence Association informed the committee that when alcohol is sold below cost price the retailer is entitled to a refund of the VAT differential.

“In effect, the Government and taxpayers are subsidising those large retailers who can afford to sell alcohol below cost price.”

The Committee heard that the retailers can claim a VAT refund on the difference between the cost price and the actual below cost sale price.

Deputy Buttimer said: “This cannot be permitted to continue. We need to immediately address this anomaly as it flies in the face of Government policy.  At a recent meeting of the Health Committee, Minister of State Roisin Shortall, TD, confirmed that she wanted to tackle the issue of alcohol pricing. Yet we have tax refunds which facilitate below cost selling. We must have a consistent policy approach. The taxation system should not be an obstruction to Government policy objectives – it should facilitate the attainment of Government’s policy aims.”

The National Off-Licence Association and Mature Enjoyment of Alcohol in Society Limited (MEAS) appeared at today’s meeting as part of the Committee’s examination of the effects of alcohol marketing on young people.

Deputy Buttimer concluded: “We would like to thank the witnesses who appeared before today’s meeting. The Committee will continue, over the coming weeks, to focus and prioritise the issues of alcohol availability and use, pricing, marketing and advertising.  We are on target with our preparation and planned publication of our report on our findings.  As I have previously said, I intend that our report will assist the Government in its plans to address the problem of alcohol misuse in a comprehensive and meaningful way.”

For further information please contact:

Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551

ENDS
 
 

Committee Membership:
Deputies
Jerry Buttimer, Fine Gael
Catherine Byrne, Fine Gael
Michael Colreavy, Sinn Fein
Ciara Conway, Labour Party
Regina Doherty, Fine Gael
Robert Dowds, Labour Party
Peter Fitzpatrick, Fine Gael
Seamus Healy, Independent
Derek Keating, Fine Gael
Billy Kelleher, Fine Fail
Eamonn Maloney, Labour Party
Charlie McConalogue, Fianna Fail
Mattie McGrath, Independent
Denis Naughten, Fine Gael
Caoimhghín Ó Caoláin, Sinn Fein

Senators
Colm Burke, Fine Gael
John Crown, Independent
David Cullinane, Sine Fein
John Gilroy, Labour Party
Imelda Henry, Fine Gael
Marc Mac Sharry, Fine Fail
Jillian Van Turnhout, Independent

 

 

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