AN Inishowen councillor
has called on the Government to harmonise
cross-border VAT rather than accuse hard-pressed
Donegal families of being unpatriotic for shopping
in Derry.
Cllr. MacLochlainn criticised Finance Minister Brian
Lenihan's "limited 26 county patriotism".
"It is his Budget and his Government's cutbacks in
support for local authorities that continues to
squeeze retailers out of business along the border.
In the border counties of Donegal, Sligo, Leitrim,
Cavan, and Monaghan, thousands have joined the dole
queues in the last year," he said.
"Rather than accusing hard-pressed families of a
lack of patriotism, the Taoiseach and Minister
Lenihan should put in place urgent interim measures
to support those retailers suffering at present."
He described the decision to increase VAT from 21%
to 21.5% as regressive and likely to cost families
up to €250 next year.
"This eats into the budgets of working families
struggling to cope with the prospect increased
public service charges and other taxes such as the
income levy.
“In addition the increase will have an adverse
effect on consumer spending hitting hard small to
medium-sized businesses," added Cllr MacLochlainn.
Before the Budget, Sinn Féin advocated a 2%
reduction in VAT to boost the incomes of low and
middle income earning families and enhance consumer
spending. “However border county businesses are now
facing a double hit as they tackle the impact of the
British Government’s decision to reduce the rate of
VAT across a range of items to 15%.
“The existence of two tax regimes on this small
island is ludicrous and leads only to a volatile
situation of economic distortions across the island,
and indeed adds to the historic border county
economic instability created by partition.
“The only progressive way forward for the
development of this island’s economic future is for
the process of an all Ireland economic framework to
begin. Today Sinn Féin is calling for the
harmonisation of VAT across the island as an initial
step in beginning this process," he added. |
