asked the Minister for Finance if his attention has been drawn to the practice of charging VAT on invoices by wholesale bottlers to retail vintners and that VAT is being charged twice on some accounts; and the action he is taking to remedy this situation.

It appears that the matter raised by the Deputy refers to a misunderstanding among some traders that the recent budget increases in the tax element in the retail price of certain goods did not include VAT. Consequently in some cases the amount of increase charged by wholesale bottlers to retail vintners was calculated on the basis that all of the tax increase announced in the budget was an excise duty increase to which the appropriate VAT rate would also apply. I understand from the Minister for Industry, Commerce and Tourism that all cases are being investigated where complaints of overcharging have been made as a result of this misunderstanding among traders.

Is the Minister in a position to confirm that refunds will be made to retail publicans who have had to pay this additional money——

Yes.

Is the Minister aware that the increase, say, in regard to pint bottles of ale and stout of 6p under this budget is being invoiced at about 72p gross, and that VAT is being added on a second time?

If that is the case it is a misunderstanding; it is a mistake. Arising out of the first part of the Deputy's supplementary question, I should say that of course those who have been charged in excess by way of this misunderstanding will be refunded.

Is the excise duty increase in the budget inclusive or exclusive of VAT, the actual increase?

I said this even on the very evening of budget day——

I was present but I was not satisfied——

I am not suggesting that it is the Deputy who misunderstands. In fact his question here helps me to confirm that the 6p element was a tax element in the budget but it was VAT inclusive; it included VAT.