Budget 2012 does nothing to tackle the State’s job crisis but everything to ensure we have the highest rate of VAT in the Eurozone according to Galway West TD Éamon Ó Cuív.
The Fianna Fáil deputy leader accused the Government of failing “to take any meaningful measures to tackle the jobs crisis” in this week’s Budget.
“Minister Noonan had an opportunity to present a credible plan for dealing with the jobs crisis,” said Dep Ó Cuív. “The small measures he announced are welcome, but limited. Long gone are the targets for 100,000 jobs. Instead, he has delivered a hammer blow to businesses and jobs, especially those in border areas, with a hike in the rate of VAT.”
Dep Ó Cuív said the two per cent hike on the standard rate of VAT “will have a devastating impact on the economy, and will cost jobs”. He also debunked the notion that the increase will bring VAT rates into line with other European states.
“The reality is that it will result in a three per cent VAT differential with the North, which will see a surge in cross border shopping,” he argued. “It also leaves Ireland at a competitive disadvantage with other European states, as we will have the joint highest rate of VAT in the Eurozone, and one of the highest rates in all of Europe.
“So while with one hand the Government claims to be supporting exporting enterprises, this move leaves most at a disadvantage with their European peers
