Every time a registered charity collects money from the public to buy equipment or other items, they still have to pay 23% VAT on that purchase despite their charitable status and Fermoy Town Council is now calling on the Minister for Finance to make charities exempt from this additional charge.

The point was raised by Cllr Tadhg O’Donovan who does a lot of fundraising work for St Patrick’s Community Hospital in Fermoy, who argued that people would be less likely to give to a good cause knowing that 23% of what is collected will be going back to the exchequer.

“It’s farcical, particularly at this point in time when the public purse is so low and people are so dependent on charity organisations. The VAT should be revoked immediately – the charity organisations are now providing what were previously State obligations,” Cllr O’Donovan said.

The issue was described by Cllr Michael Hanley as being ‘criminal’ and a ‘very serious matter’.

“Each and every one of us have stood out on flag days in the cold and wet – this is a terrible situation, so much money is wasted,” Cllr John Murphy said.