Call to cut 21% VAT rate on condoms

The Irish Family Planning Association (IFPA) is calling on the Minister for Finance to stop treating condoms as "luxury items" for tax purposes.

Condom prices in Britain are due to fall significantly following last week's budget, which saw Gordon Brown reduce the level of VAT payable on them from 17.5 per cent to 5 per cent.

The IFPA is calling on the Government to follow suit and reduce the VAT on condoms bought in Ireland, currently taxed at the top rate of 21 per cent - one of the highest VAT rates in the EU.

"Condoms are considered a luxury item, and carry a tax rate of 21 per cent. Given that we are now experiencing huge increases in levels of sexually transmitted infections (STIs), this tax should be reduced - or even dropped - in the next budget," Rosie Toner of the IFPA said.

A cut in the VAT rate to 13.5 per cent or 5 per cent would cost the Exchequer €17.2 million or €36.7 million annually. However, savings would be made in terms of the overall health budget, Ms Toner said.

"Increased use of condoms would take pressure off our health service, with less people having to present themselves for STI testing and treatment. Because of the rise in STI cases,screening services in our major hospitals are under enormous strain. In some cases, people are being forced to wait for six weeks to secure a screening appointment."

A VAT reduction would also help charities who distribute free condoms to at-risk groups, she said.

Notifiable sexually transmitted infections increased by 12.1 per cent in 2004, according to the Health Protection Surveillance Centre.

Condoms cost more than the contraceptive pill, which, as an oral medicine, does not attract any VAT. A box of 12 condoms can cost more than €20.

Mr Cowen would not be in a position to drop the VAT rate until the next budget, a spokesman for the Department of Finance said. However, she said he would consider any representations on the matter.