Ireland to raise VAT in December budget
Following a leak from the German parliament, Minister Noonan has confirmed that he intends to propose a 2% increase in the VAT rate from 21% to 23% in the forthcoming budget. He said that while no decisions had been made by the Cabinet he had to raise indirect taxes "on this occasion". He said "I will not be touching income tax but I will recommend to the Government to accept a VAT increase, The Government have not seen my full proposals yet and certainly have not signed off on that decision".
When Enda Kenny was pressed on the proposed changes he said that the VAT increase would not apply to food, children's clothing or services. It seems that the increase will hit luxury goods such as TV's and other such goods over which people have a choice to buy.
Further information will be included in the Budget on 6th December 2011.