Sources say newspaper VAT set to be dropped
VAT on newspapers is set to be scrapped in this afternoon’s
Budget, government sources told the Irish Mirror last night.
Last week, the Taoiseach said he was “positively disposed” towards getting rid of the tax that is crippling so many media outlets, especially local papers, every week.
He said the issue was “on the table” for discussion and it now looks like his position has swayed other ministers.
The yield to the Government from the 9% VAT charged on papers, €18million, is relatively small beer to the Exchequer in the grand scheme of things.
But it could mean the difference between survival and bankruptcy to so many local and provincial titles that are teetering on the brink of collapse.
DIFFICULT
Mr Martin told reporters in New York on Friday: “We are certainly examining that, as we said when we launched the Media Commission report the other day, that we would do everything we can positively to enable media to survive, particularly print media, in what is a very difficult environment. So we will be examining that positively.
“It is an issue that is on the table certainly and again, going right across Ireland, provincial media, print media and so on, has proven itself in the context of the pandemic, bringing information to the public.
“It goes to the heart of what we’ve been debating at the United Nations in respect of democracy and the centrality of the media to democracy.”
When the Irish Mirror asked him if he was in favour of scrapping the tax, Mr Martin replied: “As I say, I am the Taoiseach of the Government.
“I don’t get to take personal positions all the time, but look, we’re working on it. I’m positively disposed towards this move.”