Byrner
09-07-2009, 10:38 PM
Torlach Denihan, Director of Retail Ireland, has said that there must be no rise in taxes for households following the publication of the report of the Commission on Taxation.
Mr Denihan of the IBEC group that represents the retail sector said: "It is essential that the Government takes heed of the advice of the Commission on Taxation that there be no net increase in the burden of taxation on households.
"Consumer confidence is fragile and retail sales have fallen by 25% over the last two years. If consumers are over-taxed they will not start spending again. Consumers need clarity quickly as to how much the State intends to take from their incomes so that they can plan with confidence and resume spending.
"Retail Ireland calls on Government to take note of the Commission's statement that excise on alcohol in Ireland is the highest for wine and the second highest for beer and spirits in the EU. These excise rates should be reduced because alcohol is the biggest reason why people are crossing the border to shop.
"The report also concludes that excise on cigarettes here is the highest in the EU. This is why up to 25% of all cigarettes purchased in Ireland are smuggled, costing the Exchequer up to €500m in lost excise. Unless an effective anti-smuggling strategy can be put in place, excise on tobacco should also be reduced.
Mr Denihan said that retailers were disappointed that the Commission had failed to highlight the significant disparity in VAT rates between Ireland and the UK and the effect that lower UK rates were having on business and employment in the retail sector.
Mr Denihan said: "There is now a strong case for a significant reduction in VAT rates to reduce cross-boarder shopping, stimulate consumer spending and kick start recovery."
"Retail Ireland welcomes the Commission's proposal to broaden the rates base and calls on Mr John Gormley, Minister for the Environment, Heritage and Local Government to direct all local authorities to cut commercial rates by at least 20% in view of the crisis facing the retail sector and the consequent threat to employment.
"Since 2000 the annual rate on valuation has increased by a cumulative 57% nationally and rates are now unaffordable."
Read more: http://www.breakingnews.ie/business/ibec-consumers-must-not-be-overtaxed-425461.html#ixzz0QSWww7Pe
Mr Denihan of the IBEC group that represents the retail sector said: "It is essential that the Government takes heed of the advice of the Commission on Taxation that there be no net increase in the burden of taxation on households.
"Consumer confidence is fragile and retail sales have fallen by 25% over the last two years. If consumers are over-taxed they will not start spending again. Consumers need clarity quickly as to how much the State intends to take from their incomes so that they can plan with confidence and resume spending.
"Retail Ireland calls on Government to take note of the Commission's statement that excise on alcohol in Ireland is the highest for wine and the second highest for beer and spirits in the EU. These excise rates should be reduced because alcohol is the biggest reason why people are crossing the border to shop.
"The report also concludes that excise on cigarettes here is the highest in the EU. This is why up to 25% of all cigarettes purchased in Ireland are smuggled, costing the Exchequer up to €500m in lost excise. Unless an effective anti-smuggling strategy can be put in place, excise on tobacco should also be reduced.
Mr Denihan said that retailers were disappointed that the Commission had failed to highlight the significant disparity in VAT rates between Ireland and the UK and the effect that lower UK rates were having on business and employment in the retail sector.
Mr Denihan said: "There is now a strong case for a significant reduction in VAT rates to reduce cross-boarder shopping, stimulate consumer spending and kick start recovery."
"Retail Ireland welcomes the Commission's proposal to broaden the rates base and calls on Mr John Gormley, Minister for the Environment, Heritage and Local Government to direct all local authorities to cut commercial rates by at least 20% in view of the crisis facing the retail sector and the consequent threat to employment.
"Since 2000 the annual rate on valuation has increased by a cumulative 57% nationally and rates are now unaffordable."
Read more: http://www.breakingnews.ie/business/ibec-consumers-must-not-be-overtaxed-425461.html#ixzz0QSWww7Pe