Deputy Joan Burton has called on Brian Cowen to reduce the rate of VAT on condoms to 5%, the minimum rate allowed under EU law. In response to a parliamentary question, Cowen yesterday confirmed that this is indeed possible.

“While I welcomed the Minister’s U-turn on reducing the rate of VAT on condoms to the lower 13.5% rate in the 2008 Finance Bill, I don’t believe it goes far enough. We see reports today that the incidence of HIV infection was up one fifth in the first half of 2007. This is just one example which shows the urgent need for measures to reduce the numbers of people having unprotected sex. The Government needs to do everything within its power to help people make the right choice.

“Having previously said that EU law was preventing him from reducing the rate of VAT on condoms at all, he now readily admits that it is perfectly possible to reduce the rate to 5%. All that is missing is the political will to do so.

“The Minister says that reducing the rate to 5% would have major structural implications for the VAT system, involving radical changes. I find it difficult to believe that such a minor, yet important, change could cause such havoc with the tax system. The means are there for reducing tax on safer sex, with minimum cost to the exchequer, if only the Minister grasp the nettle.”