VAT treatment of zero-rated goods

Summary

Deputies asked whether goods currently zero-rated, such as food, could later face VAT. The Minister said they could, denied previously claiming EEC rules prevented removing VAT on food, and the Chair moved to the next question.

Peter Barry Mr. P. Barry Fine Gael

Is it the position that anything that is zero rated now cannot be subject to VAT in the future?

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George Colley Mr. Colley Fianna Fáil

No.

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Peter Barry Mr. P. Barry Fine Gael

So that the Minister could reimpose VAT on foodstuffs, for example?

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George Colley Mr. Colley Fianna Fáil

I do not find anything in this question relating to food but if that is what the Deputy wants to ask about, why has he not put down a question?

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Peter Barry Mr. P. Barry Fine Gael

There is no need for that now. The Minister has given me the answer.

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Garrett Fitzgerald Dr. FitzGerald Fine Gael

Does the Minister recall telling us that it was not possible, because of EEC regulations, to remove VAT on food although this is what he then proceeded to do?

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George Colley Mr. Colley Fianna Fáil

No. That was never said and I challenge the Deputy to produce evidence to support this false statement.

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Joseph Brennan An Ceann Comhairle Fianna Fáil

Order. I am calling Question No. 11. Deputy Keating should resume his seat.

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