DUBLIN: Retail Ireland has called on the Government to use the Budget to reduce the “punitive” tax burden on consumers to support the domestic recovery.
At the sector’s major annual conference, Retail Ireland warned that a number of external pressures could derail the sector’s fragile recovery during the crucial Christmas period. It said that the immediate pressure of the falling value of sterling risks driving Irish consumers north of the border, and that the UK’s Brexit vote has unnerved consumers.
Retail Ireland urged the Government to reduce the tax burden on consumers. It pointed out that Ireland has one of the highest marginal income tax rates in Europe, and argued for the entry point to the rate to be increased in line with wage growth.
The association also called for labor costs to be kept competitive. It cautioned that the proposed increase in the National Minimum Wage will further increase costs at a time of heightened competitive pressure.
Retail Ireland Director Thomas Burke said: “The retail sector is only getting back on its feet now following the crisis years. Total employment in the economy is 10 percent higher than it was four years ago, but retail employment is only two percent higher. This emerging recovery is now vulnerable.”
“Despite intense retail competition and falling prices, Brexit has unnerved consumers and currency pressures risk spending shoppers north of the border or online. Retailers are doing everything within their power to facedown the challenge and ensure prices stay low, but the Government has a crucial role to play.”
