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Dáil
‹ Ceisteanna ar Reachtaíocht a Gealladh - Questions on Promised Legislation

VAT on health supplements

Summary

Deputy O'Reilly challenged the planned 23% VAT on health supplements and urged the Government to engage with Revenue or change the law. The Minister for Finance insisted Revenue is independent and said he was working with his Department but would not blur the roles of Government, the House and Revenue.

As things stand, value added tax, VAT, on health supplements will be charged at the rate of 23% throughout the State starting in March. When Sinn Féin raised this issue during the debate on the Finance Act 2018, the Minister agreed to examine it in the context of the tax strategy papers later this year. We know that the Revenue Commissioners are sitting on an expert report on this issue yet the increase is going ahead in March. This is not really joined-up thinking. One part of the State is to look at the issue later in the year and another part refuses to say what its report says. In case the Government is not aware, though I imagine its members probably are, this major change will affect many thousands of users of supplements as well as workers in that industry. Will the Government provide some leadership on this issue? Will it suspend the planned increase, sit down with Revenue, bang heads together until there is clarity, if that is what is required, and engage in dialogue with those who are affected?

Comment on this
Paschal Donohoe Minister for Finance Fine Gael

I hope the Deputy is aware that the Revenue Commissioners are completely independent of the Government and the Department of Finance. We do not play a role in directing Revenue on how to interpret law.

Comment on this

The Government creates the law.

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Will the Government sit down with the Revenue Commissioners?

Comment on this

The Revenue Commissioners have concerns on how law is implemented and interpreted in this area. As the House well knows, how the Revenue Commissioners decide to apply that law is their prerogative.

Comment on this

Change the law.

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I am working with my own Department on the matter because I am aware of the concern around this issue. I will not be blurring the space between this House, the Government and the Revenue Commissioners.

There are many in this House who should know the consequences if we go down that path.

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