Boost consumer spending through Budget 2015, Retail Ireland urges government
With consumer sentiment at a seven year high, Budget 2015 could result in thousands of new retail jobs, providing the government uses this opportunity to introduce tax cuts, Retail Ireland says
26 August 2014 | 0
The upcoming budget is a chance to give some money back to consumers through tax cuts and, in doing so, boost spending and jobs in the retail sector, according to Retail Ireland, the Ibec group that represents the retail sector. With sales of big ticket items like cars and furniture on the up, and consumer sentiment at a seven year high, the government now has the chance to secure the retail recovery, the association believes.
If the momentum is maintained Retail Ireland has predicted consumer spending will rise 1.9% this year, and 2.9% next year. More upbeat consumers are also saving less; the savings rate increased to 16.1% in 2009 but is now falling back towards a more normal 8%.
In its Budget 2015 submission, Retail Ireland called for income tax reductions, a cut in excise duty, no increases to the cost of doing business and new incentives for retailers to develop vacant lots in town centres. The group also called for the retention of the successful reduced 9% VAT rate on tourism-related services, and for consideration to be given to replicating this approach in other sectors.
Retail Ireland chairman Frank Gleeson said: “Sales have grown every month this year, but the retail recovery shouldn’t be taken for granted. Tax cuts will boost disposable income and increase spending in the domestic economy. This will translate into thousands of new retail jobs.”