S.I. No. 326/1972 - Value-Added Tax (Reduction of Rate) (No. 2) Order, 1972.


S.I. No. 326 of 1972.

VALUE-ADDED TAX (REDUCTION OF RATE) (No. 2) ORDER, 1972.

I, SEOIRSE Ó COLLA, Minister for Finance, in exercise of the powers conferred on me by section 11 (8) of the Value-Added Tax Act, 1972 (No. 22 of 1972), hereby order as follows:

1. (1) This Order may be cited as the Value-Added Tax (Reduction of Rate) (No. 2) Order, 1972.

(2) This Order shall come into operation on the 1st day of January, 1973.

2. The rate of tax chargeable on the delivery or importation of goods specified in the Schedule to this Order is hereby reduced from 16·37 per cent. to 5·26 per cent.

SCHEDULE.

(a) Textile handkerchiefs.

(b) Goods of different kinds which are packaged for sale as a unit (hereinafter referred to as the package) and in relation to which all the following conditions are satisfied—

(i) the package consists of goods in relation to the delivery of some of which for a separate consideration tax would be chargeable at the rate of 16·37 per cent. and in relation to the delivery of the remainder of which for such a consideration tax would be chargeable at the rate of 5·26 per cent.,

(ii) the consideration for delivery is referable to the package as a whole and not separately to the different kinds of goods included therein, and

(iii) the total tax-exclusive value of the goods included in the package in relation to the delivery of which for a separate consideration tax would be chargeable at the rate of 16·37 per cent., does not exceed 50 per cent. of the tax-exclusive consideration for the package or 2½4 new pence, whichever is the lesser.

GIVEN under my Official Seal, this 21st day of December, 1972.

SEOIRSE Ó COLLA,

Minister for Finance.

EXPLANATORY NOTE.

This Order, which comes into effect on January 1, 1973, reduces the rate of tax chargeable on textile handkerchiefs from 16·37 per cent. to 5·26 per cent.

The Order also provides that if goods of different kinds some of which are chargeable at the 16.37 per cent. rate and some at the 5·26 per cent. rate are sold as a unit for a single consideration, the lower rate (5·26 per cent.) will apply to the whole consideration for the unit provided the value of the goods chargeable at the 16·37 per cent. rate and included in the unit does not exceed 50 per cent. of the total consideration for the unit or 2½p, whichever is the lesser. Examples of the goods to which this will apply are breakfast cereal packets and children's lucky bags containing inexpensive toys which, if sold separately, would be liable to the rate of 16·37%.