VAT move will decimate tourism sector in the west

The Government’s proposed tax changes – which give VAT breaks to tourists spending here – will ‘decimate tourism and retail’ in Galway, according to one of the country’s leading economists.

Jim Power was speaking as he published the findings of an economic report which urges the Government to urgently rethink its proposals.

The current Retail Export Scheme allows non-EU tourists to claim VAT refunds on quality Irish craft and gift items purchased in Ireland.

However, the Government’s Brexit Omnibus Bill 2020, currently moving through the Oireachtas, will exclude all purchases under €175 from the scheme.

This, according to Mr Power, means that a tourist in Galway will have to spend at least €175 on a single purchase to avail of a VAT refund.

As almost 85% of refunds under the current scheme are purchases less than €175, the Government is scrapping the scheme for retailers who do not sell high value goods.

For more, read this week’s Connacht Tribune.

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