VAT cut ‘vital’ for retailers as Britain holds its 15% rate

THE pressure on the retail sector will continue given the British government’s decision to retain its 15% VAT rate until the end of the year.

Retail Ireland, a representative group affiliated with employers union IBEC group, said the Irish Government must now consider a cut in the VAT rate here.

Director of Retail Ireland, Torlach Denihan, said: “Our higher VAT rate is one of the factors encouraging shopping by Irish residents in the sterling area.