795. Deputy Albert Dolan asked the Minister for Health if she has engaged with the Minister for Finance regarding the application of VAT to certain vaccines and prescribed medical products; if changes are under consideration; and if she will make a statement on the matter. [51289/26]

This Government?is committed to providing timely access to medicines and has made considerable investments in recent years, with annual expenditure on medicines now approaching €4 billion. This represents approximately €1 in every €8 of public funding being spent on health. This level of investment is unprecedented in supporting patients through the availability of new and innovative medicines.

Supported by 158 million euros of funding in Budgets 2021-2025, the State has delivered access to 250 new medicines. 101 of these were for cancer and 70 of these were for rare diseases.

Budget 2026 allocated 217 million euro of additional investment in medicines, including 30 million euro for new medicines. This has, as of 15th of June 2026, delivered access to 26 new medicines, including 9 for cancer and 5 for rare diseases.

The Year 1 cost of a new drug comes from the allocation for new medicines, but it should be noted that once these medicines are approved for reimbursement the full cost of providing them can reach multiples of this initial cost as their uptake increases.

Ireland is among the highest spenders on health across the EU (OECD), with the third-highest rate of State coverage of pharmaceutical expenditure in Europe.

Funding allocations for new medicines are made in the context of the annual Budget.

Changes to VAT rate are the responsibility of the Minister for Finance and not the responsibility of the Minister for Health. Any changes to VAT rates are considered as part of the normal budget process.