Ireland’s TII calls for VAT cut to boost connectivity
By lowering the cost of internet services, TII believes it will promote broader internet adoption and greater digital inclusion, especially in rural communities that often lag behind urban centres in digital infrastructure.
Telecommunications Industry Ireland (TII) advocates a reduction in VAT on internet access services delivered via fibre and 5G fixed wireless access (FWA) from 23% to 13.5%. This proposed cut is designed to support the National Connectivity Strategy’s goals, targeted for achievement by 2028.
Furthermore, TII views this VAT reduction as essential for bridging the digital divide, particularly in rural areas, by making high-speed internet more affordable and ensuring equitable access. Continuous upgrades to telecom infrastructure are also vital for meeting the demands of remote working, online education, and other digital services.
As data traffic surges due to digital transformation and AI adoption, ongoing investment in infrastructure becomes crucial for maintaining Ireland’s competitive edge and realising broader economic and social benefits. On the other hand, Telecommunications Industry Ireland (TII) highlights the significant economic impact of the telecommunications sector.
The sector employs 24,000 people with an annual payroll of €1.6 billion, and it has invested approximately €3.5 billion in network infrastructure over the past five years. Additionally, it contributes €2.7 billion annually to local suppliers. This substantial economic footprint underscores the sector’s critical role in Ireland’s economy and emphasises the necessity for supportive fiscal policies to sustain its growth and investment.
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