Many supermarkets to absorb 2% VAT hike

Some of the country's biggest supermarkets have announced they will absorb the VAT increase which is to be introduced in the new year.

The Government announced in the Budget that it is to hike he VAT rate by 2%, to 23%, from January 1.

Tesco, Aldi, Lidl and Marks & Spencer have all said that they will not pass on the VAT rise to their customers.