Ban VAT Refunds On 'Below Cost Booze'

An authorative Health Committee has called for an end to VAT refunds on below cost sales.

The Chairman of the Oireachtas Committee on Health and Children, Jerry Buttimer, has called for immediate action to prevent VAT being reclaimed by retailers selling alcohol below cost price.

He made the call last week following a meeting with representatives of the National Off-Licence Association and Mature Enjoyment of Alcohol in Society Limited (MEAS).

Deputy Buttimer said: "The issue of below cost selling of alcohol was again raised at the meeting of the Oireachtas Health Committee. The National Off-Licence Association informed the committee that when alcohol is sold below cost price the retailer is entitled to a refund of the VAT differential.

"In effect, the Government and taxpayers are subsidising those large retailers who can afford to sell alcohol below cost price," he said.

The Committee heard that the retailers can claim a VAT refund on the difference between the cost price and the actual below cost sale price.

Deputy Buttimer said: "This cannot be permitted to continue. We need to immediately address this anomaly as it flies in the face of Government policy.

"At a recent meeting of the Health Committee, Minister of State Roisin Shortall, confirmed that she wanted to tackle the issue of alcohol pricing.

"Yet we have tax refunds which facilitate below cost selling. We must have a consistent policy approach. The taxation system should not be an obstruction to Government policy objectives - it should facilitate the attainment of Government’s policy aims."

The National Off-Licence Association and Mature Enjoyment of Alcohol in Society Limited (MEAS) appeared at last week's meeting as part of the Committee's examination of the effects of alcohol marketing on young people.

(BMcC)