Tourism - Pass tax cut to consumer

A REPORT by the European Union’s statistics agency, Eurostat, indicates that the average price of alcohol and tobacco in Ireland is 70% higher than average price in the EU.

Most of the price differential can be attributed to taxation.

The Government has already announced a cut in the rate of VAT on tourism-related goods and services.

The rate is due to come down from 13.5% to 9% on Friday.

The initiative will only be effective if the saving is passed on to the consumer in the form of lower prices. For the industry to do otherwise would not only be irresponsible but also little short of national sabotage.