VAT increase being used to sneak in price rises

When is a 0.5% VAT increase the cause of a 4% price increase? Isn’t this the kind of problem we knew was going to happen? Greedy businesses will start using the new 0.5% VAT increase as a further excuse for screwing even more money out of the Irish consumer.

The company with the dubious honour of being the first we’ve been told who’ve announced this kind of underhanded price rise this morning is Eurolink Motorway Operations Ltd.

The toll for the cars using the M4 this morning when from €2.70 to €2.80, as they put it:

Due to the increase in the rate of VAT, from 21% to 21.5%, effective from 1st December, as announced by the Government on Budget Day 14th of October, our prices will rise from the 1st December.

That’s a 4% rise in price – 8 times what should have been the case with the 0.5% VAT increase.

Have you noticed anyone else sneaking in these price rises in the name of the VAT increase?

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4 Responses to VAT increase being used to sneak in price rises

  1. Mark F December 1, 2008 at 21:21 #

    Since the budget I’ve been amazed how none of our “consumer advocates” have made a peep of protest against the increase in VAT.
    This is something that is going to impact on all consumers, yet we’ve heard nothing from anyone.
    Not surprising that the consumer agency haven’t said anything – it’s their lords and masters who’ve applied the increase.
    But where’s the CAI been in all that time? Nothing!

  2. valueireland December 2, 2008 at 22:02 #

    @Mark F – Many thanks for your comment. Like you, we’re mystified at the lack of any declared opposition to the 0.5% VAT increase on the part of our two main Irish consumer advocates.
    I suppose there’s a certain amount of recognition (resignation) that there’s nothing that either of them could do to stop the VAT change from being made.

  3. Jim Daly December 4, 2008 at 14:29 #

    I work that out as a 5 percentage point rise.

    €2.70 before VAT @21% = €2.23

    €2.23 with VAT @21.5% = €2.71

    €2.23 with (mystery) VAT @26% = €2.81

Trackbacks/Pingbacks

  1. » And on that note…. VAT increases in Ireland, who has passed it on? » Tom Doyle :: TALK - December 3, 2008

    […] the flip side – ValueIreland have an article on how the Toll on the M4 has increased by 4% to €2.80. Listening to NewsTalk this morning, each time they announced the number for texting your comments […]

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