The proposed hike VAT hike on food supplements is to be deferred, pending a public consultation on the issue, Senator Maura Hopkins has said.
Senator Hopkins stated, “Previously, Revenue had a concession of 0% in place, which meant that no VAT was payable on vitamins, minerals and fish oils.”
“However, they had decided to remove this concession so that the standard 23% VAT rate would apply. I had been in direct contact with Minister for Finance and Public Expenditure, Paschal Donohue T.D. on the need for this decision to be reversed.”
Senator Hopkins continued, “It is positive now that this change has been deferred following a direct intervention from Minister Donohue.”
“Minister Donohue has committed to examining the policy choices around VAT on the treatment of food supplements, through a public consultation process, which will invite submissions from interested parties. I have urged him to ensure that the VAT exemption remains for these supplements.”
“The proposed increase by Revenue has been deferred to November 1st. However, I am confident that legislative changes will be enacted in the interim period in order to ensure that this increase will not take effect.”
“I know many people who rely on these supplements as part of their daily lives, they are already very expensive and the addition of a 23% VAT would make the cost very difficult to meet for many people.”
Senator Hopkins concluded, “The announcement of this review by Minister Donohue is a very positive step. I will be continuing to emphasise the need for the VAT exemption to be maintained on these products to both the Taoiseach and Minister Donohue.”