Retail sector demands piece of Apple tax pie

Support package for the sector could mean the difference between 'survival and liquidation' for many businesses

Retail Excellence Ireland said businesses are struggling to manage rising costs alongside antisocial behaviour. Picture: Patrick Bolger/Bloomberg

Representative body Retail Excellence Ireland (REI) has called on the Government to use some of the funds from the Apple tax ruling to fund a support package for the sector which could mean the difference between “survival and liquidation” for many businesses.

Last week, the Court of Justice of the European Union — the highest court in Europe — ruled against Apple in its latest legal bid to quash a €13bn tax order the EU Commission said it owes to Ireland. 

Ireland was supporting Apple in its attempts to overturn the ruling.

This ended an eight-year legal process which means Ireland will be able to collect the money which has been sitting in an escrow account.

Finance Minister Jack Chambers has already said this ruling will not impact the budget on October 1. 

Taoiseach Simon Harris has hinted that the money could be invested in housing and infrastructure.

REI chief executive Jean McCabe said after receiving a huge windfall from Apple, the Government “now has the means to provide the kind of support that could be the difference between survival and liquidation for many businesses around the country”.

“The retail industry has been decimated by several rising costs including the minimum wage, statutory sick pay, insurance premiums, and general inflation, and are dealing with ever-increasing instances of crime and anti-social behaviour. 

"Every week we are seeing shops go out of business and people losing their jobs,” she said.

“We are not in a recessionary environment, so the onus is on the Government to give the industry the support it needs to navigate this particularly difficult time.” 

REI also said that it has joined umbrella organisation SME Alliance to advocate for retail and hospitality industries.

The SME Alliance is calling for a range of business support measures to be introduced including changing the calculation of the minimum wage, the application of a 8.8% rate of PRSI to the entirety of the national minimum wage, as well as reducing the standard 23% Vat rate to 21%.