Cafe sex is a luxury – at least according to Brian Cowen, who has decided not to cut the tax rate on condoms in this year’s budget. Currently in Ireland, VAT on condoms is charged at the standard rate of 21 per cent, despite the fact that it is possible to apply a reduced rate.

The European Union recommends a rate of just 5 per cent, which is applied in many EU member states, including the UK. Condoms are also included in the EU’s list of medical products that can avail of a 13.5 per cent VAT rate. The minister confirmed it while it possible to reduce the VAT he believes that this would not have any effect on the price.
The Minister’s decision flies in the face of most thinking on the issue. Since the beginning of year a number of campaigns have been waged to reduce the tax rate, including those by the Union of Students in Ireland (USI) endorsed by the Crisis Pregnancy Agency and the Irish Pharmaceutical Union (IPU).
The minister’s decision is a blow to the USI. However, as USI Welfare Officer Kelly Mackey notes: “The campaign has attracted a lot of interest in the media, including support from Today FM’s Ray D’Arcy, and is gathering momentum. We plan on maintaining pressure on the government.”
The decision to keep the standard tax rate smacks of a lack of joined-up thinking by the Government. Recently the Health Service Executive ran a campaign promoting the use of condoms – but the Department of Finance’s typically parsimonious stance seems to undermine this initiative. While the current government may not have any plans to reduce the VAT rate, this could change with a general election coming up.
The Labour Party supports the idea of the reduced VAT rate. According to Liz McManus, Labour’s deputy leader and spokesperson on health, “The rising level of sexually transmitted diseases is extremely worrying and this measure, while minor, would make condoms more affordable.”
Meanwhile, the Green Party would like to see condoms zero VAT rated. Dan Boyle TD, the Green’s spokesperson on finance says, “In the Green Party we have committed ourselves to the reduced VAT rate on condoms. It is currently unclear whether it’s possible to have the zero VAT on condoms under current EU regulations, but it’s something we are actively investigating.
This March, the Irish Pharmaceutical Union (IPU), the representative body for 1,600 pharmacists campaigned for the reduced rate. According to the IPU, this would make condoms more affordable, help reduce the number of sexual transmitted diseases and send out the message that the Government was serious about encouraging people to practice safe sex. Were the VAT rate to be reduced, pharmacy chains such as Unicare, Hickey’s, McCabe’s, Sam McCauley’s, Bradley’s and retailers such as Tesco, Supervalu and Centra have promised to directly pass on any savings to their customers.
The Irish Family Planning Association believes that increased use of condoms would take pressure off the health service, with less people having to present themselves for STI testing and treatment. According to the last figures available from the Health Protection Surveillance Centre, sexually transmitted infections rose by just over 12 per cent in 2004 – a very worrying statistic.
Condoms are more expensive in Ireland than almost anywhere else in Europe, with the average box of 12 retailing between 10 and 15. The 2006 Irish Study of Sexual Health and Relationships found that 20 per cent of respondents cited cost as a reason not to use condoms. Unsurprisingly, the proportion of people who believed cost was an issue was higher among younger people and those on low incomes. While cost may not be the only reason for the high number of Irish people engaging in unprotected sex, it certainly is a factor.
In light of these findings, the government stance seems short sighted. Until the VAT rate is reduced, it seems that safe sex will have to remain a luxury for those that can afford it.