More calls for VAT cut to help retailers compete

THE head of the Irish division of international electrical retail group, DSG has become the latest figure to call for a reduction in Ireland’s VAT rate — branding Government inactivity on the issue “an astonishing lack of understanding”.

Declan Ronayne, managing director of DSG Retail Ireland — the group which operates the Currys and PC World electrical retail chains — said that the group’s three Northern Irish-based stores in Newry, Derry and Enniskillen will take more than €12 million out of the Irish economy this year, as Irish shoppers go North for cheaper deals. He said this would represent more than €2m being lost to Ireland in terms of VAT income.

The Republic’s 21.5% VAT rate was left unchanged in this month’s emergency budget.