VAT on supplements
Deputy McGrath and Deputy Butler objected to the 23% VAT on health supplements, citing products used by vulnerable patients. The Taoiseach said VAT treatment is a Revenue matter and that the classification is under review.
With all the scandals concerning money for the children's hospital and all the waste on projects and the responses that have been given, the Taoiseach and the Minister for Finance, Deputy Donohoe, have made a major attack on health shops with the imposition of the 23% VAT rate on health supplements, including vitamins, which many people need to keep them alive while they wait years and years for treatment. One of the products treats macular degeneration. My colleagues are sending busloads of people to the North for eye surgery. Is the Government going to review the VAT rate? It is a penal rate to apply to small and fledgling businesses that are an important part of the fabric of small and big towns in rural areas. People like health shops and they give good advice and are very helpful to their customers. They have a good relationship with their customers. The Taoiseach had the cheek one day to refer to health products as snake oil. There are enough snakes going around without focusing on health food products. The situation is very serious. The Taoiseach is whispering to the Tánaiste and laughing. Is the Government going to review the savage blow of a 23% VAT rate on small business people and their products?
Comment on this
I also wish to raise the VAT increase on food supplements from 1 March, as I did last week. MacuShield is taken by many older people for macular degeneration. As my colleague said, the Taoiseach used the term "snake oil" in reference to some supplements. However, various health studies show that many supplements, including MacuShield, are of benefit to many. Will there be an exemption for certain supplements or will they all be subject to this unjust VAT increase?
Comment on this
This is not a Government decision; it is a Revenue determination. A distinction is made between products that are designated and proven as oral medicines, to which a 0% VAT rate applies, and foodstuffs where a higher rate applies.
Comment on this
The Taoiseach is in charge, not the Revenue.