Overall change to VAT prompts strong criticism
While the minister announced that the overall standard VAT rate is set to increase by 0.5% as of the beginning of December — from its present level of 21% to 21.5% — he emphasised that vast swathes of everyday expenditure will be unaffected by the changes.
The headline measure — which means Ireland has one of the highest VAT rates in Europe, outside of the Scandinavian countries — is aimed at yielding savings of €208 million for the Government next year and €227m in an average full year.
