Lower VAT rate ‘will boost Irish retail industry’
Wednesday January 6, 2010
The implementation of the reduced 21 per cent VAT rate will help Ireland’s retail industry become more competitive, an industry body has said.
Chambers Ireland, which represents the business interests of 13,000 firms across the country, said the new rate, combined with the return of the UK’s 17.5 per cent VAT rate, will help retailers compete with their counterparts in Northern Ireland.
The body said many Irish retailers have seen their sales figures tumble in the past 12 months as consumers migrated north of the border to take advantage of the UK’s 15 per cent VAT rate.
The new rate however, will help generate much-needed revenue and lower the rate of job losses especially in the retail sector, Chambers Ireland maintained
Ian Talbot, chief executive of the organisation, said: “In 2010 all stakeholders in the Republic must remain focussed on cost reduction with a view to enhancing Ireland’s competitiveness and assuring a speedy return to growth based on export success.”
Ireland’s finance minister Brian Lenihan announced last month that as well as VAT being reduced to 21 per cent in 2010, excise duty will also be reduced by 12 cents per pint of beer and cider.