Dáil Éireann Debate, Thursday - 7 November 2024
72. Deputy Colm Brophy asked the Minister for Finance the estimated cost of reducing the VAT rate from 13.5% to 11% and 9% respectively for food and catering services, as well as all entertainment and hairdressing services; and if he will make a statement on the matter. [45969/24]
View answerI am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide a costing for the measures outlined above using information provided on tax returns alone.
However, using third party data, tentative estimates of the full year cost to the Exchequer of the requested measures is provided below:
|
Sector |
Cost of VAT at 9% |
Cost of VAT at 11% |
|
Food and Catering Services |
€675m |
€375m |
|
Entertainment |
€20m |
€11m |
|
Hairdressing |
€39m |
€21m |
|
Total Cost |
€734m |
€407m |
