VAT changes ‘will allow Republic to compete again’

CHAMBERS Ireland said yesterday that the reduction of the VAT rate to 21% combined with the restoration of the British rate of VAT to 17.5% would give southern retailers a real opportunity to compete with traders north of the border.

Ian Talbot, Chambers Ireland chief executive, said: “In the past 12 months many Irish retailers have seen their sales figures crash as result of the VAT and excise differentials, currency movements and higher costs of doing business in the Republic of Ireland.

“The reduced VAT rates coupled with the changed excise rates on the sale of alcohol will stimulate spending and generate much needed revenue streams for the Exchequer, while also helping to stem the flow of job losses, particularly in the retail sector.”