Retail Excellence has called for a reduction in the current 23% VAT rate, in Budget 2018 to combat challenges and to ensure 'Irish retailers maintain a competitive edge against the backdrop of Brexit uncertainty.'
The retail representative organisation, said in it's Budget 2018 submission ‘Retail: Sustaining and Growing an Economy' that there is an urgent need to reduce the VAT rate in the face of a number of challenges to include Brexit, sterling devaluation as well as the 3% VAT differential between Ireland and the UK.
“Our priority is a reduction in the 23% VAT rate which was introduced as a financial emergency measure some time ago. Such moves are critical for the wellbeing of Irish retail and the Exchequer." Lorraine Higgins, Deputy CEO of Retail Excellence said.
Higgins highlighted that there is an increase in consumers travelling north of the border to shop with others buying over €14 million online from businesses operating outside of Ireland every single day.
"In relation to online spend this amounts to a loss of €1.2 billion in VAT receipts per annum for the Exchequer and this is only set to rise if corrective action is not taken”. She added.
© 2017 - Checkout Magazine by Donna Ahern