Gilmore: No decision on increasing VAT rate
Eamon Gilmore has said no decisions have been made on new taxation measures, after reports that the German parliament was given a document saying the top VAT rate would be raised by 2% in the up-coming Budget.
The move would bring the top rate of VAT to 23%.
The lower rate of VAT was reduced early this year as part of the Government’s cost-neutral Jobs Initiative to encourage demand in labour-intensive sectors such as tourism.
The Reuters news agency reported to have seen a document presented to the budget committee of the German lower house of parliament yesterday which highlighted the increase in the top VAT rate. It is expected the move would generate €670m.
Speaking to TV3, Mr Gilmore said: "This seems to have come from the Troika, based on a statement in the Memorandum of Understanding entered into this time last year by the previous Government which talks about an increase in the VAT rate.
"Certainly, as far as the Government is concerned, we have made no decision on tax matters. The budgetary process is not yet completed and won't be until right up to Budget day."
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