Ireland cuts reduced VAT rate from 13.5% to 12%

7 March 2011

The new Irish government published its budgetary plans yesterday. This includes a proposal to cut the reduced VAT rate from 13.5% to 12% for two years. In November 2010, the previous regime announced a two-step VAT increase from the current 21% rate to 23% by 2014. The new Fine Gael and Labour ruling parties committed to capping the VAT rate at 23%.

The cut to the reduced VAT rate was a party manifesto pledge of Fine Gael at last month's general election.

 

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