The response from Labour: 15/05/02

Thank you for your email in connection with the campaign "Vote no VAT for Charities.

In general the Labour Party wish to support the tax treatment of Charitable Groups. However there is a need to clearly define what is and is not a genuine Charity. The term 'charity' is very badly defined - for example the ESRI (Economic and Social Research Institute) is defined as a charity.

I have spoken with Derek McDowell, TD, Labour Party Spokesperson on Finance. He has suggested that we consider directly allocating the VAT income back to define charities than have another possible loophole in our tax system.

The Labour Party are prepared to meet with your Lobby Group and consider how best to tackle the problem.

Yours sincerely,

Ruairi Quinn, TD
Leader of the Labour Party