Government must commit to No VAT Increase in Budget 2012

The President of Mullingar Chamber of Commerce Pat Whelan has today called on the Government to commit to not increasing the rate of VAT in the forthcoming budget.

The call was made as the Retail Sales Index for August, 2011 shows that the volume of retail sales decreased by 3.6% in August, 2011 when compared with August, 2010 and a monthly decrease of 0.4%.

“Consumer confidence is fragile. In the lead up to Christmas, one of the busiest times of the year for many retailers, consumers need to know what to expect in Budget 2012.

“An assurance that VAT will not be increased can help to protect against a further decline in retail sales. Stability is needed in order to restore confidence and increase domestic consumption.”

“The Government must also remain mindful of the impact of VAT rates on trading in border regions in particular.

“The VAT changes applied in 2008 in the Republic had a disastrous impact on trading with consumers crossing the border to avail of lower prices due to lower VAT rates there.

“Such an occurrence must be avoided at all costs in order to support businesses as they compete with their counterparts in Northern Ireland, particularly in the lead up to Christmas,” Whelan concluded.

This entry was posted in news and tagged , . Bookmark the permalink. Both comments and trackbacks are currently closed.