ESRI: VAT returns may fall by almost €7bn due to coronavirus

Reduced household spending, due to restrictions imposed to fight the spread of the Covid-19 pandemic, could result in a decline of nearly €7bn in indirect tax revenues for the State this year, the Economic and Social Research Institute – or ESRI – has said.

The economic think-tank sees household spending taking a huge dent this year. But the knock-on effect to the exchequer – in terms of the money it takes in through indirect taxation - will be greater with the true extent depending on how quickly consumer life returns to normality.