Dublin Senator Catherine Noone is today calling for a review of existing VAT rate anomalies.
Senator Noone said: “Currently, there are a number of anomalies within the Irish VAT system that allow unhealthy foods to avail of reduced rates. Food like sugar and frozen chips should not be VAT exempt.
“We know from research that consumers are less likely to purchase a product if they know there is a higher rate of tax imposed upon it. The inverse effect of this is also true, in that consumers will be more likely to purchase goods they know to be reduced in tax.
“These rates are even more questionable considering products such as bottled water are currently taxed the full 23%.
“However, the anomalies are not just limited to food and drink products designed to keep us safe, such as car safety belts, bicycle and motorcycle helmets and stop smoking courses are all placed at 23% VAT.
“By addressing these issues that exist we can make our VAT system a more responsible and effective one,” said Senator Noone.