Price of stamp to increase by 8 cent under EU plan

THE price of a standard stamp will increase by 21% or about eight cent under proposals released by the European Commission.

EU Tax Commissioner Frits Bolkestein insisted the proposal should not have any significant effect on consumer costs, because customers already pay hidden VAT on their post office transactions. His VAT plan is designed to end unfair competition between the traditional public sector suppliers, such as An Post, currently exempt from VAT, and private competitors, which have to charge VAT.

“The proposal would make the VAT system fairer and level the playing field for all operators, leading to improved postal services for everyone,” Mr Bolkestein said.