Fianna Fáil TD for Cork North West Michael Moynihan has said the proposed 23% VAT increase on food supplements is effectively a tax on people’s health. He voiced his opposition to the tax hike, which is due to come in on 1st March.
Deputy Moynihan says the move, which comes ahead of a review from the Tax Strategy Group, will impact individuals, families and businesses.
“Revenue announced plans to increase a tax on food supplements late last year. This was after the Junior Finance Minister, Michael D’arcy telling the Dáil that the Tax Strategy Group would be examining the proposals on food supplements, and a decision would be taken after they had published the review in the summer.
“I find it hard to understand why these changes are being made in advance of the publication of the review, surely it makes more sense after it.
“Aside from the negative impact on businesses, the impact on individuals and families will be immense. 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. At a time when the cost of living is already high, a 23% tax increase on food supplements could push them out of reach for many families.
“Along with my Party Spokesperson on Finance, Michael McGrath, I have called on Minister Donohoe to halt the tax hike until the impact of the increase can be fully examined by the expert group” concluded Deputy Moynihan.