Food and clothes tax in sight to claw back cash

FOOD and clothes costs are set to increase with fears the Government could also introduce a tax on children’s clothes.

Smokers and drinkers can expect some hikes on the “old reliables” in the upcoming budget with the Government saying a number of changes will be made to excise duties and licences in 2011 to the value of €110 million.

As part of the National Recovery Plan, the standard VAT rate will increase to 22% in 2013 and to 23% in 2014. These changes will bring in €620 million.