The VAT Department is not in a position to know how much of the increased revenue (from 15 to 18 per cent) in the VAT rate, originally promised for rechannelling into the health sector, did in fact go into the health sector.

Answering a parliamentary question by Labour MP Anthony Zammit, Finance Minister Tonio Fenech said that the government's outlay for the health sector had amounted to €181 million in 2004, €185 million in 2005, €194 million in 2006, €203 million in 2007 and €235 million in 2008.

For 2009 the government had voted no less than €267 million.

Minister Fenech said the VAT Department could not determine how much extra revenue could be attributed to the 20 per cent increase in VAT because over the years payments were received for previous years, and also because of economic growth.

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