Lenihan urged to reverse VAT rise

FINANCE Minister Brian Lenihan is being urged to drop plans for a half per cent increase in VAT in 2009 when he brings the Finance Bill to the Dáil today.

The call was made after it was announced the rate of VAT would be reduced in Britain resulting in a fall in the price of consumer products and an increase in the number of people travelling across the border to shop.

This will lead to a 6.5% difference in VAT between Britain and Ireland something that will “hasten the stampede of shoppers” to the north, according to Labour party finance spokeswoman Joan Burton.