Budget increase in VAT

Sir, – Rather than the Government increasing VAT on everything, why doesn’t it increase it only on services such as gas, electricity…

Sir, – Rather than the Government increasing VAT on everything, why doesn’t it increase it only on services such as gas, electricity – all the things that a household can’t do without and that we can’t buy from another country. By increasing VAT on everything, it is forcing us to shop up North or online. – Yours, etc,

ELEANOR JORDAN,

The Maltings,

Bray, Co Wicklow.

Sir, – Along with many others I am concerned at Minister for Finance Michael Noonan’s declaration that the 2 per cent increase in VAT would really only affect the wealthy. Does he really think those of us who work have a choice about buying fuel for our cars so that we can get to work, for instance? Or does he think it is a luxury for young people studying to own a computer? Students who require these computers to access their college notes and communications?

I am fed up listening to Mr Noonan and others within the Government talk about lack of confidence among consumers. When will they realise that it is not confidence we lack but cash – because of their unfair tax structure and imposed pay cuts. Now they are ensuring that we can spend less again. Who ever thought we would have a fair budget this year with a change of Government?

We were promised fairness by Labour but there is no evidence that the Labour participants in Government are concerned about ordinary working people. Time to organise to take to the streets in Ireland. We have been accepting and quiet for too long. There is time to make a statement by taking to the streets of every town in Ireland and letting the Government see we are not taking any more of its version of “fairness”. – Yours, etc,

READ MORE

MÁIRÍN DOWLING,

Cherry Grove, Naas, Co Kildare.

Sir, – At last! The Minister for Finance has unveiled the Government master plan to “put the country back to work”: increase the rate of VAT on tools by 2 per cent! The Germans must have had a good giggle. – Yours, etc,

YVES CHAVANNE,

Meadow Dale,

Hartstown,

Dublin 15.

Sir, – Given that the Minister for Finance has claimed on numerous occasions that all the low-hanging fruit has been picked, why doesn’t he start plucking some of the ripe, plump fruit off the highest branches? He could also give the tree a good shake and make substantial saving by cutting off dead branches and pruning back at all levels.

For example, he could introduce a third tax band for salaries above €100,000, apply a salary limit of €150,000 across the entire public sector and limit pensions in the sector to half that. Such measures would be much fairer than increasing VAT, introducing new stealth taxes and cutting key services and capital expenditure.

Given that the country is effectively bankrupt, force majeure should take precedence over legitimate expectations or entitlements and it makes no sense to increase borrowings and pay additional interest simply to allow those at the top of the tree to over-ripen. – Yours, etc,

BRIAN FLANAGAN,

Ardmeen Park,

Blackrock, Co Dublin.

Sir, – The recent exchange rate movement in our favour simply restored a level playing field. It did not give the traders of Dundalk a competitive advantage.

For the first time in four years the traders of Dundalk were looking forward to a Christmas/ New Year without the loss North. – Yours, etc,

PADDY MALONE,

President,

Dundalk Chamber of Commerce,

Ramparts Road,

Dundalk, Co Louth.