The Government has agreed to refund the Live Aid Trust the equivalent of the VAT receipts on the charity's new DVD and CD, it was announced today.
A DVD of the 1985 Live Aid concert, which was watched by 1.5 billion people and raised €100 million to fight famine in Africa, was released earlier this week. A re-recorded version of the Band Aid single, Do They Know It's Christmas?, is to be released before Christmas.
Live Aid organiser Bob Geldof called on governments to forego the VAT on the sales and give the money directly to the charity. "No government should take money from the mouths of the hungry," he said.
The British Chancellor, Mr Gordon Brown, agreed and announced earlier this week all tax accrued would go towards fighting hunger.
The Taoiseach, Mr Ahern, told the Dáil today that while it was not possible to exempt the DVD sales from VAT, the Government would give the trust the equivalent funds.
"The House shares an admiration of Bob Geldof for his continuing hard work in the third world," he said. "It is an important and valuable contribution that inspires young people."
The money is to be taken from the Government's official development assistance programme, which is administered by Development Cooperation Ireland.
A similar arrangement was used for the earlier Live Aid recordings.