Who paid for the increase in the 9% VAT rate? You did
Smart Money: The rise fed through to prices immediately – and so would Brexit tariffs
Peter Mark hair salon on Grafton Street celebrates the reduction of the VAT rate on hairdressing to 9% in 2011.
Noticed the price of your cup of coffee going up ? Or your visit to the hairdressers? One of the most controversial moves in the last Budget was the increase in the 9 per cent VAT rate, amid warnings that it would hit the hotel and restaurant sector and tourism.
It is too early to judge whether it will – but what is clear is that the bulk of the rise is being paid by consumers. The evidence, in recent inflation figures from the CSO, shows an extraordinarily quick pass-through in the VAT increase to consumers immediately it took place in January.