VAT Reduction – Who is passing it on? Who isn’t?

The VAT reduction, from 13.5% to 9%, was intended as a boost to our service economy, particularly in the areas of food and drink.

Based on a spot check of areas around Leinster House, I have been somewhat disappointed by the uptake: five out of ten outlets I visited had reduced their prices as a result of the scheme. Of the five that hadn’t: four said “they would be doing it soon”, while another said “the reduction in VAT had offset a planned price rise, and so no change would be necessary”.

I am dissatisfied by the explanation of the latter retailer and – as such – I think it would be appropriate and timely if people considered posting those who have not passed on the VAT reduction to Catherine.Noone@oireachtas.ie. We’ll publish the list here. Our office will follow up with them, and we’ll see what the explanation is.

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