There was good news for consumers today. The Government reduced tax. Not the amount taken out of people’s wage packets but rather the rate on a range of services many of us use on an almost daily basis.
“I didn’t realise [the rate had fallen],” said John O’Brien from Swords, when questioned on Grafton Street in Dublin. “It’s probably not a lot but cutting any tax is a good thing at the moment.”
Restaurants, cinemas, hotels, theatres, newspapers and hairdressers were among the businesses that saw the rate of VAT levied on them fall from 13.5 per cent to 9 per cent. The price of concert tickets that went on sale from today will also be cut.
For consumers, where the reduction is applied, it means a meal that previously cost €25 should now be €24. A hotel room that cost €100 should be €96.
The move was warmly welcomed by industry groups and politicians alike as an initiative that would give the sectors concerned a much needed boost and improve the product on offer to tourists.
But somewhat surprisingly there was little visible evidence or fanfare around Dublin today to suggest anything had changed. Retail outlets aggressively advertised summer sales in their windows but few restaurants, hotels or barbers appeared to be making noise about their reduced prices.
Hairdressing chain Peter Mark pointed out that it had snipped its prices with a giant poster hanging in the window of its Grafton Street outlet showing the reductions.
McDonald’s highlighted that because it was paying less VAT customers would also benefit, with the price of a Big Mac meal reduced by 25 cent.
Bewleys on Grafton Street said it had a new menu to reflect the reduced VAT rate but it did little to highlight the fact, which appeared to be the case with a lot of eateries.
Fiona McHugh, of Fallon & Byrne restaurant, cafe and wine bar on Exchequer Street, which did make its price reduction know, welcomed the development.
“I think it’s great. Anything that reduces prices for customers is a good move and I really do think it will make a difference,” she said.
“It’s coupled with the fact a lot of restaurants have reduced their prices anyway.”
Ms McHugh said that, although it might not seem like a significant reduction, a person who each day bought a coffee for breakfast, a sandwich for lunch and went to the cinema, theatre a concert or out for dinner would probably come out of the week about €15 better off.
“I don’t know if it’s going to save me much but every little helps,” said Jessica Dwyer from Dublin 8. “I buy a coffee and lunch everyday so I suppose it’ll add up over time.”
It is hoped that the initiative will drive the tourist industry on and create jobs to further boost the economy. Visitors to Dublin didn’t appear too concerned by the development either way.
“[Restaurants] are a little bit more expensive here,” said Ron Tabley from Toronto, Canada. “But so far we’re very pleased with the service. I don’t mind the price so long as you get good service.”
Tamas Santa, from Mogyorod in Hungary, said that things in Ireland were three times more expensive than at home but that salaries here were more than three times larger.
“If you stay here for a while and work and get a good salary, I think the prices are really nice, really cheap. I think the balance in Ireland is better.”
