VAT reduction - time to name & shame

[MsAnneThrope]

Why the obsession with passing on the VAT reduction?
A business will charge prices which relate to operating costs and market conditions and not immediatly related to the rate of VAT. If you dont like the price then just go somewhere else and stop whinging about it.
Chances are that if VAT went up by an equivalent percentage, prices would largely remain the same as well
In general, any VAT reduction is good news for the consumer and puts less pressure on business

I always vote with my feet, so you're correct there. The VAT reduction was just one step to try stimulate spending in certain sectors, in order to preserve jobs at a minimum and hopefully create new ones. Get the people who do have some spare money (and they are out there) back spending again. It was also aimed at tourists so they could get better value for money here and not feel they were being ripped off, leading to a more enjoyable experience and an increased chance they'd return again some day.

You could call it a plea to businesses in the relevant sectors to "don the green jersey" and do their bit. It wasn't designed so that businesses could further line their own pockets.

As regards an increase in VAT not having an effect on consumer prices either, I think you'd find plenty of examples here of 'rounding up', over and above the actual rate increase. It has happened all the time in Ireland for as long as I can remember. Remember the gouging 'rounding up' that came in when we switched to the Euro? Or small increases in excise duty resulting in double the intended price rise? Too many greedy gombeens in this country. I avoid their businesses like the plague.

[darkhorse]

I always vote with my feet, so you're correct there. The VAT reduction was just one step to try stimulate spending in certain sectors, in order to preserve jobs at a minimum and hopefully create new ones. Get the people who do have some spare money (and they are out there) back spending again. It was also aimed at tourists so they could get better value for money here and not feel they were being ripped off, leading to a more enjoyable experience and an increased chance they'd return again some day.

You could call it a plea to businesses in the relevant sectors to "don the green jersey" and do their bit. It wasn't designed so that businesses could further line their own pockets.

As regards an increase in VAT not having an effect on consumer prices either, I think you'd find plenty of examples here of 'rounding up', over and above the actual rate increase. It has happened all the time in Ireland for as long as I can remember. Remember the gouging 'rounding up' that came in when we switched to the Euro? Or small increases in excise duty resulting in double the intended price rise? Too many greedy gombeens in this country. I avoid their businesses like the plague.

The days of the greedy gombeen businessman or woman are long gone - competition is fierce out there and there is no room for any kind of market manipulation or complacency by any one individual. You will also find that a lot of businesses are surviving on the edge of extinction - paying last months bills with next months sales - and if next months sales dont come through - then they are gone. Many of them are also weighed down by huge rent and rates bills and loan repayments - having been set up and designed to operate in boom times.
So even if the VAT reduction is not passed on - it will help to stabilise the business and preserve jobs.
Ideally it should be passed on - but its not always going to be possible.

[An Gilladaker]

With the exception of newspapers, and hairdressing to a lesser degree, the VAT cut does not seem to have been passed on. I think it was Varadkar that said this morning that Noonan was prepared to reverse the VAT cut in the coming budget.

Dont hold your breath