Deputy Charlie McConalogue has said that plans to implement VAT on many food supplements should be halted until a planned review by the Tax Strategy Group is finalised.
VAT is set to increase from 0% to 23% on food supplements from the beginning of March.
Donegal Deputy McConalogue commented: “People are taking various food supplements for all sorts of reasons and broadly in an effort to live healthier lives. This change will have a detrimental impact on them and the health supplement sector will also inevitably suffer.
“Minister Donohoe previously confirmed in the Dáil that the implementation of this tax on supplements would be reviewed as part of Tax Strategy Papers, which are produced every summer. These papers examine various tax issues and outline proposals to be considered in the context of the following budget.
“However despite the fact that this matter was being put forward for review, new Revenue guidance was issued in late December 2018 and confirmed that VAT of 23% would apply to food supplements from 1st March 2019.
“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.
“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 McConalogue.
