Cork based Fine Gael Senator, Tim Lombard, has said that community groups and charities will benefit from Budget 2018 with the introduction of a VAT Compensation Scheme for Charities.
“Fine Gael is working to build a republic of opportunity where everyone has a fair chance and the opportunity to reach their full potential. Charitable organisations and community groups play a big part in this through their work all across Cork.
“I’m pleased to say that these groups are going to benefit in a really tangible way with the introduction of a VAT Compensation Scheme for Charities.
“There is an initial Budget allocation of €5 million for this Scheme which will take effect from 1st January.
“Under the Scheme, charities will be entitled to a refund of a proportion of their VAT costs on inputs, including eligible purchases, based on their non-State funding. It will be payable one year in arrears.
“This will ensure that charities and voluntary groups can use more of the funds that they raise from the public or are granted from the state, raise directly on their core work, helping the people and communities who need it most.
“A study carried out by Charities Institute Ireland found that a sample of 140 charities paid over €71 million in VAT in 2015. This shows the scale of the resources that will be freed up under the Scheme introduced by Minister Paschal Donohoe.
“The charity sector has been calling for a VAT Compensation Scheme for a long time now, and I commend all those who have highlighted the importance of this over many years.
“With the tax reforms and modest but sustainable spending increases in Budget 2018, Fine Gael is delivering for families and communities all across the country. We want to give a little back to those who have had to make sacrifices during what were very tough times for our country.
“The gains we have made since the dark days of the recession are hard won and they are fragile, especially in the context of Brexit. However we are now in a position to protect our economic recovery and use some of the resources it provides to give everyone here in Cork a fair chance, and the opportunity to reach their full potential. Helping charities and community/voluntary groups is very central to that.”