Dáil Éireann - Volume 355 - 24 January, 1985

Written Answers. - Reduction of VAT.

261. Mr. O'Kennedy asked the Minister for Finance the estimated change in revenue in (a) 1985 and (b) a full year, of a 1 per cent, a 3 per cent and a 5 per cent reduction in each rate of VAT.

Minister for Finance (Mr. Dukes): The estimated full year cost of a 1, 3 or 5 per cent reduction in respect of each existing VAT rate is given below. The cost in 1985 is not given as it would depend on the starting date of any reduction.

Existing rate (per cent)

Cost of 1 per cent reduction

Cost of 3 per cent reduction

Cost of 5 per cent reduction

£m

£m

£m

5

18 

54½

91 

8

14 

23½

18

23

42 

126½

210½

35

28 

46½