Economy to blame for drop in business

Value Added Tax (VAT) was raised by 2% as part of the December Budget last year.

According to Liberty traders, businesses would have suffered regardless of the budget cuts.

Many people were sceptical about the government’s decision to hike up Ireland’s VAT rate from 21% to 23% in the 2012 Budget, despite their claims it could help generate up to €670 million in revenue.

The general consensus among traders in the Liberties is that a drop in business in recent weeks is due to the general state of the economy rather than the 2% VAT increase.

Some establishments, such as Solas Bar and restaurant on Wexford St, have chosen to absorb the tax hike and are displaying signs advertising their 0% VAT increase in order to keep customers coming in.

Finestyle Furniture owner Brendan Henry says “I’ve been in business for 25 years and I’ve never seen anything like this. The old carpet mill on Thomas St has been open for over 40 years and it just closed down. That should tell you something about the economy.”

Even traders dealing in products which don’t carry VAT have been hit.

Jim Roach, owner of Roach’s Greengrocers on Meath St was just thankful his business hadn’t incurred the tax increase. “We only deal in fresh produce so we have no VAT on our goods, thanks be to God.”

Meanwhile Declan Larkin of Larkin Bros. Butchers on Meath St said although his trade was largely unaffected by the VAT increase, he too had noticed a drop in business.

“We used to have five people working here, now we’re down to two. There’s no one coming in. The country’s been badly affected, especially around here.”