European Commission lines up lower VAT rates

VAT rates could be lowered on a whole range of services and goods from hairdressing to construction to restaurants under proposals from the European Commission.

If adopted by the Government and the rest of the EU member states, it could result in savings on a whole range of consumer goods and services.

However, with less money expected into the State’s coffers this year because of the economic downturn, the Government may not be interested in reducing the tax take by lowering VAT rates.