06/02/2019

FF: Plans To Hike Up VAT On Food Supplements Should Be Halted

A Fianna Fáil TD has called for a halt in plans to increase the VAT on food supplements to 23%, pending a review by the Tax Strategy Group.

Deputy Michael McGrath, the party's spokesperson for finance, said he has raised the issue twice already as the government plans to implement the tax, which currently stands at 0%.

He commented: "People are taking various food supplements for all sorts of reasons and broadly in an effort to live healthier lives, and this change will have a detrimental impact on them. For individuals and families already under pressure from the rising cost of living, this increase is most certainly not needed. The sector too will inevitably suffer significantly."

Speaking during the report stage of the Finance Bill, Minister of State D'Arcy stated that "the tax strategy group will bring clarity to the entire food supplement sector. With more information available to us, we may then be able to deal with the matter more fully in the Budget in 2019".

However, new Revenue guidance was issued in late December 2018 and confirmed that VAT of 23% would apply to food supplements from 01 March 2019.

Deputy McGrath continued: "At no stage did the Minister or the government indicate that the Revenue Commissioners were planning to publish revised guidelines in advance of the Tax Strategy Group examining the issue. While Revenue is independent in the performance of its functions, it makes sense that no changes are made in this area until the Tax Strategy Group has had an opportunity to consider the issues more fully.

"Perhaps the true view of government was revealed by comments made by the Taoiseach in the Dáil before Christmas when he said 'food supplements very rarely do anything for our health. They are mostly snake oil and just cost people money'.

"The Taoiseach's ignorant comments displayed a basic lack of understanding of the importance of various types of food supplements. I believe these changes should be halted until a full review can take place as part of the Tax Strategy Papers due to be published in the summer," concluded McGrath.



(JG/CM)

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