VAT ON HOUSING

Sir, - I wish to refer to an article (May 23rd) on the subject of VAT on housing

Sir, - I wish to refer to an article (May 23rd) on the subject of VAT on housing. I would just like to clarify that this rate is fully in accordance with EU rules. The option for reduced rating for housing is not likely to go at the end of this year, nor would it necessarily disappear with the adoption of the definitive VAT regime.

Furthermore, I would point out that the Government have indicated their intention, subject to budgetary constraints, to retain reduced rating for labour intensive services, including construction, in the medium term. The Government are also committed to seeking, in future negotiations at EU level, to have the option of reduced rating for such services incorporated into the definitive VAT regime. - Yours, etc.,

Press & Publicity Officer,

Department of Finance,

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Upper Merrion Street,

Dublin 2.