Finance Minister rejected request from McGrath to consider levying one cent tax on mobile phone calls

Finance Minister Paschal Donohoe rejected a request from Cabinet colleague Finian McGrath to examine putting a one cent tax on mobile phone calls, the Irish Independent can reveal. Mr McGrath, the Disabilities Minister, wrote to Mr Donohoe in July of last year asking if any research had been done into the idea, how much revenue it could generate and if the minister had a view on the idea.

«A constituent was on to me about putting a one cent tax on mobile phone calls,» the Independent Alliance TD wrote in the short email in July 2018.

Mr Donohoe later responded to say the department had carried out research in 2010 and 2011 in regards to a tax on both mobile phone calls and text messages.

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«The research concluded that whilst any additional revenue would be welcome, wider social and economic factors which may militate against the introduction of a tax of this nature would also have to be taken into account,» he wrote.

He pointed out that calls and texts from mobiles are already subject to 23pc Vat. The minister also added that given apps like WhatsApp and Skype have provided alternatives, it was likely the number of traditional calls and texts from mobile phones has fallen.

«We would confidently assume that the number of text messages and phone calls has steadily declined in recent years,» he said.

The email exchanges were released under Freedom of Information.