The British Government’s decision to increase its VAT rate, coupled with the decline in value of the euro against sterling, will stimulate the domestic economy and create jobs., according to Enterprise, Trade and Innovation, Minister, Batt O’Keeffe TD.
Minister O’Keeffe said: “The move will increase consumer demand and generate retail sales at a time when we need every possible support to create jobs and build for economic recovery.”
“The increased VAT rate in the UK, allied with falling value of the euro against sterling, will discourage cross-border shopping and incentivise more of our consumers to spend their money in this jurisdiction”
“The move will severely curtail the loss in revenue to our economy as a result of cross-border shopping which was estimated to be worth up to €600 million.”
