Monday November 30, 2009
The dash to purchase items at lower VAT rates in Northern Ireland is costing scores of jobs in the Irish republic, retailers have said.
According to Retail Ireland, the migration of consumers north of the border for shopping trips resulted in the loss of 1,700 jobs in November at an average of one job loss for every 150 cross-border shopping trips.
Retail Ireland based its figures on a survey conducted by TNS Worldpanel, which estimates that 3.5 per cent of the republic’s grocery retail market has made a trip north to secure bargain prices.
Torlach Denihan, director of Retail Ireland, said cross-border shopping caused approximately 400 job losses over this past weekend alone.
"If cross-border shopping continues at this rate during December, similar numbers of jobs will be lost, with particular devastation in border counties Cavan, Donegal, Louth and Monaghan," he said.
A recent report by the Office of the Revenue Commissioners and the Central Statistics Office found that the total value of cross-border shopping in 2009 will be between 450 and 700 million euros.
Monday November 30, 2009
The VAT rate reduction to 15 per cent last year has only made a small difference to improving retail sales, an expert has said.
Richard Dodd, of the British Retail Consortium, explained that the effect of the VAT cut on retail sales has been marginal when set against some of the big discounts retailers have been offering under their own volition.
He pointed out therefore, that the fact VAT is going back up to 17.5 per cent in January will only make a small difference to sales and will only significantly affect those buying larger items such as cars and expensive furniture.
"The most important factor influencing sales is the state of the economy and how confident and well-off people feel," Mr Dodd said.
"I actually think the impending VAT increase is not much of a factor at all in the improving sales that we are seeing."
According to the Confederation of British Industry’s latest Distributive Trades Survey, 19 per cent of retailers expect sales volumes to improve next month when compared to last December.
Friday November 20, 2009
Authorities in Vietnam have released a new database of imported consumer goods liable to duties.
The General Department of Customs issued a document to the customs departments of various provinces and cities in Vietnam containing new price guidelines for goods imported into the country such as alcohol, vehicles, motorbikes and refrigerators.
Clothing, gas cookers, washing machines, air conditioning machines and building glass are also included in the new price guidelines.
The price database will only be used by the country’s customs departments for risk assessment purposes and will not be used to fix the customs value of imported goods – either by imposing a different price of the goods for duty purposes or by setting a minimum price.
Vietnam’s General Department of Customs also released guidelines on how various regional customs departments should conduct the inspection of values declared by companies in Vietnam.
Companies importing goods into Vietnam currently have to pay VAT to customs at the same time as they pay import duties.
Wednesday November 18, 2009
Consumers in the UK are planning to cut down their spending this holiday season in the lead up to the VAT rate hike, new projections show.
The Telegraph reports that one in three shoppers expect to trim their Christmas spending this year as they prepare for higher prices when the rate of VAT is increased back up to 17.5 per cent.
Some of the areas that will be worst hit are furniture and electricals, as shoppers attempt to avoid spending money on non-essential items. However, clothing, health and beauty products will fare much better.
Overall, the non-food sector is expected to lose out on around £1.3 billion during the fourth quarter due to declining sales.
Retail market research company Verdict said the amount shoppers are set to spend during the Christmas period will fall by around £535 million this year – the first drop in 20 years.
Experts have previously predicted that there will be a surge in spending as consumers rush to secure cheaper prices before the VAT rate increases.
Monday November 16, 2009
The Republic of Ireland has announced that no changes will be made to its rate of VAT in order to bring it in line with Northern Ireland.
Retailers had called for lower VAT to stem the flow of shoppers travelling north of the border to secure cheaper prices, but the government maintained that VAT will remain unchanged.
Retailers have said not reducing VAT would cost the Irish exchequer 2.5 billion euros as consumers abandon local shops in favour of outlets within the UK.
Deputy prime minister Mary Coughlan was advised that Irish-branded products such as Denny traditional back rashers are 47 per cent more expensive in the Republic than in Northern Ireland, while a packet of Kerry Low Low White Cheddar Slices is 82 per cent less expensive.
According to an internal government briefing note: "It is incumbent upon all elements of the retail sector, including retailers, suppliers, distributors and manufacturers to ensure that there is the greatest degree of transparency possible as to reasons for the current north-south price differentials."
VAT is charged at a rate of 21 per cent on most goods and services in the Republic of Ireland.
