Isn’t that a genuine fear all traders wont pass on the vat rate reduction to customers
SubstantialGoat912 on
Lived experience tells us that VAT rate savings never get handed on. Looking at you hospitality sector.
PowerfulDrive3268 on
Could they have a mechanism whereby if a trader wants to avail of the lower vat rate they can’t have raised prices for a certain amount of time before or afterwards. When they do raise prices it’s limited to a certain percentage.
Would probably be unwieldy and hard to enforce mind.
You would hope that some traders would use the lower rate to be attract more customers but human nature being what it is proably won’t work like that.
GerKoll on
There is no need to worry, dear government, of course it would not.
YoureNotEvenWrong on
Prices only reduce via competition.
In the short term they may take it, but in the end the competition would bring prices lower
> The officials said a Vat reduction could also be considered regressive as it would benefit those who spent most on bicycles or e-bikes.
That’s not what regressive means. Regressive is when the tax decreases as the value increases
5 commenti
Isn’t that a genuine fear all traders wont pass on the vat rate reduction to customers
Lived experience tells us that VAT rate savings never get handed on. Looking at you hospitality sector.
Could they have a mechanism whereby if a trader wants to avail of the lower vat rate they can’t have raised prices for a certain amount of time before or afterwards. When they do raise prices it’s limited to a certain percentage.
Would probably be unwieldy and hard to enforce mind.
You would hope that some traders would use the lower rate to be attract more customers but human nature being what it is proably won’t work like that.
There is no need to worry, dear government, of course it would not.
Prices only reduce via competition.
In the short term they may take it, but in the end the competition would bring prices lower
> The officials said a Vat reduction could also be considered regressive as it would benefit those who spent most on bicycles or e-bikes.
That’s not what regressive means. Regressive is when the tax decreases as the value increases