VAT on Musical Instruments
The Minister estimated VAT revenue from new pianos at £55,000 and rejected exempting musical instruments, saying they should not receive more favourable treatment than other goods at the same VAT rates.
asked the Minister for Finance the estimated revenue which will accrue to the State during the current financial year from the imposition of value-added tax upon new pianos.
Comment on this
Arising from the Minister's reply I should like to ask two supplementaries on this rather esoteric question. I understand from the largest piano supplier in Ireland that the average piano costs £1,000, that they sell 150 per year, that the cost to the State is £30,000 and that the average piano is bought by a mother who wishes her child to pursue a musical education. Does the Minister consider that the gain of £30,000, or whatever figure he mentioned, to the State is a valid tax upon what is alleged to be a musical nation?
Comment on this
The figure supplied to me by the Revenue Commissioners is £55,000 and I have no reason to doubt that figure. Of course, it is possible to buy pianos other than new pianos. There are many excellent built-up pianos so that a mother anxious to impart musical training to her children can do this without investing £1,000 for a new piano. I can understand the Deputy's anxiety to make this facility available at a lower cost but there are many goods and services subject to VAT for which a very good case can be made in isolation but I am afraid the Exchequer is in the position that it must take a neutral stand and not proceed to use the fiscal laws of the country for the purpose of advancing the merits of each case.
Comment on this
My second question to the Minister is, would it tax his fluency if I asked him if he was aware of the famous idiom ne tirez sur la pianiste?
Comment on this
asked the Minister for Finance if he will consider exempting musical instruments such as pianos from VAT.
Comment on this
Sales of new musical instruments, including pianos, are liable to VAT at the rate of 20 per cent and sales of second-hand musical instruments, including pianos, are liable to VAT at the rate of 10 per cent. There could be no justification for giving musical instruments more favourable VAT treatment than other goods subject to the same VAT rates. Accordingly, I must reply in the negative.