Direct support rather than VAT cuts needed

Governor of the Central Bank of Ireland Gabriel Makhlouf: "I tend to be sceptical about using tax as a measure to provide support from Government. Picture: Gareth Chaney/Collins

Targeted financial support rather than VAT cuts are a better way of providing assistance to business sectors impacted by Covid-19 the Governor of the Central Bank has said.

Gabriel Makhlouf said that cuts in VAT may have their place in supporting businesses but said it should not be the main measure.