VAT exemption for books
The Minister estimated that exempting all books would cost £2.6 million in the last financial year; about half related to school books. He acknowledged the burden of book costs but said 1982 revenue would exceed £4 million; the Chair limited further debate.
asked the Minister for Finance the estimated loss of revenue that the State would have suffered in the last financial year if (a) all books and (b) all school books were exempted from VAT.
Comment on this
(a) £2.6 million; (b) it is not possible to give a reliable estimate due to difficulty in many instances in distinguishing between school books and other books, but it is thought that about half of the £2.6 million loss would be attributable to what would generally be regarded as school books.
Comment on this
My supplementary will be shown to be relevant. Does the Minister accept that the high price of school books represents a serious burden for many families? Given that the loss of revenue will be small, will the Minister look favourably on the possibility of exempting either all books or school books alone?
Comment on this
I accept what the Deputy says in relation to the cost generally. The figure of £2.6 million is in relation to the last financial year arising out of the increase in VAT from 10 to 15 per cent from 1 September last. The revenue expected for 1982 will be over £4 million.