SEÁN KENNY TD HIGHLIGHTS INSTANCES WHERE VAT RATE CUT IS NOT PASSED ON TO CONSUMER

Posted on July 6, 2011 2:18 PM   |   Permanent Link   

The Dublin North East Labour TD, Seán Kenny, has today called on restaurants, fast food outlets, and hotels to pass on the recent cuts in the VAT rate to consumers and stated there was evidence that this was not happening in every case.

"Sales tax on restaurants, hotels, cinemas, newspapers and tourism-related activities fell from 13.5 per cent to 9 per cent from July 1st, as part of the Government's jobs strategy. When having a meal in a restaurant that I regularly frequent in the last couple of days, I noted that the price had not reduced at all. Given the reduction in VAT, the price should have been lower." said Deputy Kenny.

"I raised this issue with Dublin Chamber of Commerce this morning at a breakfast meeting organised by the Chamber for Dublin TD's. They informed me that they were aware of this issue, and indeed, had already spoken to some hotels in the city about lowering their prices to reflect the VAT reduction" Deputy Kenny continued.
"At the end of the day, the consumer is the person who is being denied the benefit. If consumers find the item or the service for which they have paid has not been lowered, they should make a complaint to the National Consumer Agency", Deputy Kenny concluded.