Economy

‘Mass closures’ inevitable unless government reduces Vat rate – retail body

Retail Excellence Ireland criticises ‘punitive’ labour costs imposed by government, including the increased minimum wage, statutory sick pay and legacy tax debt

A survey by Retail Excellence Ireland shows that 84 per cent of retailers have made adjustments because of the soaring cost of doing business. Picture: Getty

There will be mass closures in the retail sector if the government does not revert the rate of Vat to 9 per cent, Retail Excellence Ireland (REI) said today.

It comes amid a coalition row over the rate of the tax, which was hiked back up from the pandemic-era 9 per cent to 13.5 per cent last September. Neale Richmond, the junior enterprise minister, told the Business Post that he favoured splitting the Vat rate, ...