Chambers Urge Government Not To Raise VAT

Business & Finance - Economy

Saturday, 05 November 2011 13:15

Written by Barry McNamara

Chambers Ireland has today said that the Government’s priority in Budget 2012 must be to return the public finances to a sound position in order to help attain sustainable employment growth.

The body says one measure which will not help to achieve this would be any move to increase the rate of VAT.

Ian Talbot, Chambers Ireland’s Chief Executive said, “The publication of the Medium-Term Fiscal Statement sets out the challenges we as a nation face in very clear terms. We know that a large gap continues to exist between Government spending and revenue and that this gap must be closed. Continuing to run large deficits and borrowing to fund them is simply not viable.”

“The new budgetary process which will see the Medium-Term Investment Plan and the Public Service Reform Programme published within the coming weeks is a positive development – one which Chambers Ireland called for. However, we are concerned that the absence of a commitment not to raise VAT in Budget 2012 will result in reduced consumer confidence and in turn further declines in retail sales and possible job losses,” Talbot concluded.