RGDATA calls for no tax on food

The Retail, Grocery, Dairy & Allied Trades Association (RGDATA) says it does not want to see price hikes on every day food items in this Budget.

Director General Ailish Forde says the backlash from the launch of the euro indicates that any indirect taxes on food items would be bad for retailers and consumers.

"There has been a lot of negative consumer reaction out there. Food prices are running 2% below the general rate of inflation and the risk problem is at the services sector.

"Realistically all the Government can do is to make sure there is significant competition in those areas where there has been price hikes and not to add to the problem by putting any increases on those prices.

"That is exactly what increases in indirect tax will do."