I have criticised the move by the Government to set a threshold of €75 for the VAT Refund Scheme.
This scheme was designed to incentivise tourists visiting Ireland to purchase goods and claim a refund of the VAT. This is a major part of business for many retail outlets in rural towns.
“The new legislation which is part of the Brexit Omnibus Bill, was pasted in the Dáil and the Government also refused to accept an amendment to have a review of the effect of the threshold after a period of 12 months”.
“Jim Power, Economist has carried out an assessment of the impact of the €75 threshold and he has determined that this threshold will affect 16% of sales and in excess of 50% of transactions”.
The nett effects will reduce the business available to small retailers. This is a negative move at a time when we need to support small business.
“This is demonstrating poor judgement by the Government and a lack of understanding of the negative impact this legislation will have on small retailers who rely on the tourism trade”.