McCreevy slams plan to hike clothes tax

THERE is no way the European Commission will get away with increasing VAT on children’s shoes and clothes, Finance Minister Charlie McCreevy said yesterday.

Proposals due out today in Brussels are expected to insist that a similar rate of VAT be charged on all goods throughout the EU.

In Ireland, this would mean an increase in the price of children's shoes and clothing, on which there is no VAT at present, and an increase from 13.5% to 21% VAT on coal, gas, electricity and building materials for commercial developments.