Thinking of holding off on those big purchases in the hope that prices will fall or that your money won’t be quite so tight? Well if leaked documents are to be believed then you may want to act fast – because VAT looks set to rise.
According to the documents, the top rate of VAT will increase by two per cent in next month’s Budget.
The government is insisting that no final decision has yet been reached – however, the document indicates that VAT will leap from 21 per cent to 23 per cent, pushing up prices on everything from electronics and white goods, to services including accounting.
Attached to a draft “letter of intent” from Finance Minister Michael Noonan and the Governor of the Central Bank, Patrick Honohan, the document was called Ireland: Memorandum of Economic and Financial Policies. It was not signed by either minister however, though a space was left for the exact date.
The VAT rise would meet many analysts’ expectations with Ireland committed to making budgetary adjustments of €3.8billion in December’s budget. The document suggested that after successive budgets with income tax burdens increased significantly, the focus this time will be on indirect tax increases to deliver the majority of the €1billion additional tax effort needed.
Great time to save
The good news for Irish shoppers is that now is a great time to save on a host of goods – with retailers competing for business ahead of the prime Christmas market.
For example, take a look at the electronics voucher codes section at Moneysaver.ie. Big name brands such as Dell, Carphone Warehouse and GAME are among those offering unique deals. So why not check them out and see if you can save now to avoid feeling the pinch of increased prices later?