The proposed 2 percent increase in VAT included in the upcoming budget has been described as an “absolute disaster” for businesses in the region. Carrick Chamber President, Gerry Faughnan said the proposed increase was simply, “crazy economics” which would only further reduce our ability to recover from recession.
Speaking to the Leitrim Observer, Mr Faughnan said that businesses were being “forced down an unfortunate road” and coupled with increase costs already borne by the businesses community, this VAT increase will devastate many small and medium enterprises.
“We definitely expect this VAT increase to further decrease spending. It is, quite simply, “crazy economics”,” he told our reporter.
Despite assurances from the Government that the VAT increase will not apply to food, Mr Faughnan maintained that the impact of the rise would still be seen in food prices.
“The fact is that this increase will impact on transport costs for things like food and coupled with the increase in the Carbon Tax, there is no way that I can see food remaining unaffected,” he said.
With a recent study by AA Travel Insurance showing that more people are now planning to do their Christmas shopping across the border there are genuine fears that the proposed VAT increase will simply encourage more people to shop in Northern Ireland.
See this week’s Leitrim Observer for the full story