Food supplements VAT review
Catherine Connolly and Noel Grealish argue the Government should defer the VAT increase on supplements pending a policy review and note wider health concerns. The Taoiseach repeats that the issue is for the independent Revenue Commissioners and not for Government.
I refer back to the decision to place a 23% VAT rate on food supplements from 1 March. Deputy Howlin raised the number of signatures that have been gathered. The Taoiseach pointed out that the Minister for Finance has been in touch with the Revenue but it is adamant it is its decision. The Government's area is policy and if it is the policy of the Government to look at this, and I understand a review is under way, it makes no sense for the Revenue to persist with the decision. It could be deferred pending the policy review.
We are going through an omnibus Bill for Brexit and putting in aids for various businesses and, at the same time, the other hand of the Government is ensuring that people's jobs will be in trouble because of this VAT decision.
Most important are those who use health supplements. We have all received a large number of representations from people with disabilities, who are struggling to live on the ground and are paying for supplements, the price of which will jump by 23%. For God's sake, I appeal to the Taoiseach to do the right thing and make a practical decision about this. Of course the Revenue is independent but the decision can be deferred.
Comment on this
This is causing significant concern and worry to the thousands of people around the country who take food supplements to relieve health conditions and maintain good health. A recent UN report entitled, Towards a Common Food Policy for the European Union, published earlier this month, stated that 80% of healthcare costs are caused by chronic diseases, many of which are the result of poor diets. The report suggested that EU reform of public procurement and VAT could shift incentives in favour of healthy and sustainable diets.
The Minister for Business, Enterprise and Innovation, Deputy Heather Humphreys, and Ms Mairead McGuinness, MEP, recently opened a new facility for Revive Active in Mullingar at a cost of €500,000 and employing up to 35 people. I met representatives of that company who advised me that, if this VAT rate is introduced, they could end up laying people off.
Along with my colleagues, I ask that the decision on the VAT rate be deferred until proper engagement takes place with all the stakeholders.
Comment on this
I can only give the Deputies the reply I gave earlier. This is a matter for the Revenue to determine. The Revenue Commissioners are independent and any decision on a deferral is also be a decision for Revenue and not for Government. The VAT rate in Ireland for recognised oral medicines, such as folic acid, is 0% but, for processed foods, VAT applies.