The Government is “positively disposed” to reducing the VAT rate for the newspaper sector, Taoiseach Micheál Martin has said.
Speaking in New York on Friday he said a reduction in the current nine per cent VAT rate was on the table.
“We are certainly examining that”, the Taoiseach told journalists at a reception for the Irish community in New York.
“As we said when we launched the report of the Media Commission, we want to do everything we can positively to enable media to survive, particularly the print, in what is a very difficult environment.”
“We will be examining it positively. There is a budget next week but it is an issue that is on the table. Certainly we are examining it.”
“Going right across Ireland media, provisional media, print media has proven itself in the context of the pandemic bringing information to the public. It goes right to the heart of what we have been debating at the United Nations in respect of democracy and the centrality of media to democracy.”
Mr Martin said the Government was “positively disposed” to addressing the VAT rate.
The newspaper industry has argued that the current rate of VAT at nine per cent on newspapers is effectively a tax on information and it has urged the Government to reduce the rate to zero.
The VAT rate on print and digital newspapers in Ireland is among the highest in Europe.
The Taoiseach also said the Government would announce substantial measures in the cost of living package to alleviate the pressure on households and to protect jobs.
He said there was still work to be done on the Budget and he would be involved in those discussions when he returned to Ireland.
