VAT relief for Temple Street screening unit
Gregory sought a full VAT waiver for a £100,000 screening unit funded by public donations. The Minister said the existing scheme could reduce VAT from 25% to 10% for qualifying donated equipment, but no application had been received and budgetary conditions ruled out extending the scheme.
asked the Minister for Finance if he will waive the VAT on the specialised screening unit financed by fund raising events for the Children's Hospital, Temple Street, Dublin 1, as a special gesture for the Millennium Year; and if he will make a statement on the matter.
Comment on this
I would point out to the Deputy that Value-Added Tax Refund Order No. 20 (S.I. No. 10 of 1987) already exists to provide partial relief from VAT on qualifying donated medical equipment and this avenue should be explored by the parties involved who wish to purchase this unit. Contact should be made in the first instance with the Department of Health who have a primary role in operating the scheme. Budgetary circumstances do not permit of any extension of the scheme at present.
Comment on this
In view of the very large sum of money, a sum of £100,000, for the screening unit, raised entirely by voluntary effort and which will benefit the public generally, in this instance will the Minister consider full relief of VAT? Will he do this as a once-off gesture to the Children's Hospital in Temple Street in the Dublin Millennium Year?
Comment on this
I should love to be able to agree fully with the Deputy but I have to say — and I did not know the exact cost which the Deputy says is £100,000 — that the scheme which is operating at the present time which allows the VAT rate to be reduced from 25 per cent to 10 per cent covers equipment costing £25,000 or more bought with voluntary donations. Therefore, this piece of equipment should qualify. I am also informed by the Department of Health that they have received no application under the scheme for a VAT reduction in this case. Perhaps through the Deputy's efforts here today the hospital authorities may be informed that they should apply to the Department of Health. On the basis of what the Deputy tells me, that the equipment costs £100,000, anything over £25,000 means that the VAT is reduced from 25 per cent to 10 per cent, so they have that concession. As I said in reply to the question earlier, budgetary circumstances do not permit of any extension of the scheme at present.