A decision by Revenue Commissioners to delay the introduction of a VAT rate of 23 per cent on food supplements until November 1st has been welcomed.
Last December, it was announced that the 23 per cent VAT rate would be applied on all food supplements from this coming Friday, March 1st 2019.
Food supplements have until now been treated as foods for VAT purposes, availing of the concessionary zero per cent rate applicable to foods in Ireland for more than 40 years.
Health food stores reacted angrily to the proposed change and more than 60,000 people signed a petition urging the government not to follow through with the planned increase.
Praising the decision, Deputy McConalogue said: “Common sense has prevailed as the Minister has decided to examine the policy surrounding taxation on food supplements.
“This will ease the anxieties of many who use these products and were facing significant cost increases.
“The majority of people take these food supplements in a bid to live healthier lives, and any increase in the cost of them could see people forced to give them up. People should not be punished for trying to lead healthier lives.
“There was also substantial fear from health food shop owners in Donegal regarding this proposed tax. It was clear that this would have a detrimental effect on their business.
“This is only a temporary respite for business owners and those who take health food supplements and we must now await the recommendations of the Tax Strategy Group in the summer.
“I will continue to follow up with both revenue and the Minister for Finance to seek that the implementation of this tax is permanently halted.”
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