Vol. 526 No. 4
245 Mr. Aylward asked the Minister for Finance if he will make provision in the forthcoming budget to defray the VAT on heating oil for old age pensioners and other deserving cases in view of the recent increase in oil prices; and if he will make a statement on the matter. [26864/00]
The position is governed by EU VAT law with which Irish VAT law must comply. Member states can retain the zero rates of VAT which were in place on 1 January 1991, but are prohibited from introducing new zero rates. Therefore, it is not within my power to remove or zero rate the supply of home heating oil. EU VAT law also requires that VAT applies regardless of the status of the user, so it is not open to me to remove the VAT on home heating oil even for the elderly.
The Department of Social, Community and Family Affairs administers the free fuel allowance scheme which provides an allowance of £5 per week for fuel from mid-October to mid-April each year which assists those who qualify towards reducing their fuel bills. Any change in the free fuel allowance scheme will be considered in the context of the forthcoming budget.
