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Ireland VAT increase to 23%

Community Veteran
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Registered: 24-09-2008

Ireland VAT increase to 23%

http://www.tmf-vat.com/tmf-in-the-media/ireland-potential-2-vat-increase-in-2012-to-23.html
Quote
6 December 2011 update
Ireland VAT is to be raised by 2% to 23% from 1 January 2012.  This was confirmed in today's Irish budget.

Could it happen in the UK?
33 REPLIES
x47c
Grafter
Posts: 878
Registered: 14-08-2009

Re: Ireland VAT increase to 23%


Well Denmark's rate has been 25% since begining of the 1990's.....so I guess its quite possible.
tinto
Grafter
Posts: 262
Registered: 21-11-2010

Re: Ireland VAT increase to 23%

When Alistair Darling was Chancellor, he dropped the VAT rate for a time and sales seemed to pick up.  Gid took over the job, increased the VAT rate, and sales have since gone down.
It's a fact that VAT is a tax that effects people at the lower end of the financial scale more than those at the other end since it represents a larger proportion of their income.
It's also a fact that Gid is applying the screws quite firmly in other ways to the same people, and whilst he talks a good fight, he seems unwilling to do anything about bankers bonuses, executives remuneration, or tax avoidance by those at the top end of the financial scale.  This isn't really a surprise since they're the people who fund the Tory party.
So I wouldn't bet against VAT being increased again.
Community Veteran
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Registered: 21-03-2011

Re: Ireland VAT increase to 23%

The Gov't should abolish income tax for anyone earning less than £40,000 but make up the difference with a 30% import tax. It would give our UK manufacturing industry a chance to recover.
Now Zen, but a +Net residue.
TheIslander
Grafter
Posts: 95
Registered: 13-11-2011

Re: Ireland VAT increase to 23%

I would suggest a large tax on call centre communications for companies that use overseas call centres. That would least prompt them to bring the jobs back to the UK.
The problem with Ireland is that because of the large loans from EU central bank. Germany is telling them what they should do and ordinary people are suffering.
Community Veteran
Posts: 18,546
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Registered: 12-08-2007

Re: Ireland VAT increase to 23%

How do you think other countries would react when we try to export to them?  A 30% import tax would be a recipe for disaster.
Community Veteran
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Re: Ireland VAT increase to 23%

Quote from: AlaricAdair
It would give our UK manufacturing industry a chance to recover.

The manufacturing capability of the UK has been run down so far, this is not practical to do, I dont disagree with you, just that the reality is we have so little manufacturing skills it would be a problem.
But something radical is needed.
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Community Veteran
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Registered: 21-03-2011

Re: Ireland VAT increase to 23%

@artmo The effect of dropping income tax would mean there is more money to buy goods, including imported ones. When the countries such as China & India truly drop import barriers, at the moment the balance is heavily set in favour of importers to the UK. Our problem is we import too much and manufacture too little for consumption within our own country. There's nothing to stop those foreign companies basing manufacturing in the UK to avoid an import tax.
The free trade economists/politicians/lobbyists have had it all their own way so far with disastrous results, including Local Authorities not able to afford basic services. It is time for a change. At present we as a nation in the UK are living on borrowed money.
Now Zen, but a +Net residue.
Community Veteran
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Registered: 06-11-2007

Re: Ireland VAT increase to 23%

25% seems to be the mantra of the conservative party.....
I remember when (in the 1950`s I think) PURCHASE TAX was 25%   -
Then again I remember when INFLATION REACHED 25%
AND   unemployment in some areas was also 25% (mostly the mining areas)
now it looks like we may be going back to the 25 % VAT.....
Ah well..... you live and learn............( or maybe not   Undecided  )
Artmo just posted about tax.... which made me think of.....
25% of your wages (at least) are paid to the government in taxes
Community Veteran
Posts: 18,546
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Registered: 12-08-2007

Re: Ireland VAT increase to 23%

Another problem with attempting a 30% import tax is that it couldn't apply to the EU  and a large large part of our exports go to the EU.  High import duties generally do not work.
Community Veteran
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Registered: 23-09-2010

Re: Ireland VAT increase to 23%

If the banks paid a realistic interest rate on savings there would be much more spending money available.
Currently only the banks seem to be getting any benefit from my savings.
As for Ireland, well after years of their government crowing how much better they and their people were than us poor Brits...........................
Community Veteran
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Registered: 12-08-2007

Re: Ireland VAT increase to 23%

Quote from: billnotben
If the banks paid a realistic interest rate on savings there would be much more spending money available.

Interest rates are very poor at present and likely to remain so for a few years.  Remember though if we were earning more on our savings then the cost of borrowing would also be higher and this would adversely affect the housing market and fuel inflation.
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Ireland VAT increase to 23%

you are lucky you dont have to use pay day loans
Quote
However, if the loans - some charging interest rates of more than 4,000% - are rolled over, debts can quickly escalate. One woman told the BBC she borrowed £300 and now owes £720.
Community Veteran
Posts: 5,342
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Registered: 23-09-2010

Re: Ireland VAT increase to 23%

Quote from: artmo
Interest rates are very poor at present and likely to remain so for a few years.  Remember though if we were earning more on our savings then the cost of borrowing would also be higher and this would adversely affect the housing market and fuel inflation.

There has to be some sort of balance and at present none even remotely exists. It's far too one sided.
We have been told by governments that the interest rate should be related to the inflation rate. Except it seems when it effects the government. Then all bets are off and we are back to the old days of screwing with the economy to suit  and benefit the government and not the people.
Community Veteran
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Registered: 02-08-2007

Re: Ireland VAT increase to 23%

Quote from: pierre_pierre
you are lucky you dont have to use pay day loans
Quote
However, if the loans - some charging interest rates of more than 4,000% - are rolled over, debts can quickly escalate. One woman told the BBC she borrowed £300 and now owes £720.

This is something the government should clamp down on.
Nothing wrong with pay day loans providing the level of interest charged was reasonable and there was a maximum limit that the person could be advanced.
As for VAT,  most people on the forum will remember a time when it did not exist, so it was only introduced to provide the government with more money to spend, despite this they still run up massive debt and try to extract even more from us with various changes to pensions and other cut backs. The more they get the more they want and we must reach a stage where for many people it will not be a matter of not wanting to pay but a case of being unable to pay.