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HIGH-PROFILE RESTAURANTS and cafés are failing to pass on the government VAT reduction to customers, according to an informal survey.
Out of 151 outlets examined, just 16 had reduced their prices – or just over ten per cent. The checks were carried out by the office of Fine Gael Senator Catherine Noone a day after the VAT rate was cut on July 1, the Sunday Times reports (subscription required). Some 38 businesses would not even discuss the subject.
Meanwhile, a separate poll carried out by the newspaper revealed that outlets operated by 10 well-known café chains have not passed on the price cut. Stores run by Café Sol, Butlers, Costa Coffee and O’Briens were among the offenders.
The VAT reduction was introduced in an attempt to boost domestic and tourism demand for goods and services. The measure saw sales tax cut from 13.5 per cent to nine per cent on eateries, hotels, cinemas and many printed publications at a cost of €120million to the taxpayer.
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name and shame. people should boycott these outlets and support the places that have passed on the saving.
Precisely, I was just going to say the same.
Hit them in the pocket, they won’t be long in upholding the spirit of this initiative. To those businesses who complain that they’re only clawing back some of their losses, and there have been a few in the media already saying just that, perhaps they would care to explain what recourse the rest of us have to make good the losses we’ve incurred since the beginning of the downturn, and how they can reconcile maintaining or even increasing their prices while the rest of us have less disposable income?
Good to see ‘Rip-off Ireland’ is still alive and well.
ever considered that struggling businesses need every assistance to keep their heads above water, especially as they are competing for employees with welfare
Valid point, the deduction was made though on condition that it was to be passed onto customers with the view to getting cautious consumers spending again – not for business owners to trouser the extra margin
Ever think that the struggling businesses might not be struggling so much if they passed on the reduction? They might just find that it would encourage more customers to spend their money on them!
If the employer is “competing….. with welfare”, the employer isn’t paying enough. If they can’t afford to pay enough, they don’t have a viable business. Too many private companies grew fat during the boom years on government grants, government/qango contracts and customers with more borrowed money than sense. Pass-on the VAT cut, as intended. Simple.
Stephen: ever consider they are out for whatever they can get? Even if means following so-so / underhanded business practices.
Hopefully the negative press will now nudge them in the proper direction.
so what will happen is that government will put it back to 13.5% and all the prices will go up ” because of the vat increase”
They are fools if they didn’t think this was going to happen.
That does not come as a surprise to me at all, just the other day had a discussion that greed still persists over common knowledge in this country.
The only business that I see that has reduced their prices were the No 32 restaurant in Dundalk.
Well done to them.
both the Jades in the town have aswell.. many places don’t look like they have dropped it until you get the bill.. a meal that was ?50 now is ?48, I experienced this myself.
Langton’s in Kilkenny also.
Tamarind (formerly Lemongrass) in Galway passed this on (and had several posters displayed to that effect). AND we got a Galway Arts Festival discount on top of that. So someone isn’t screwing customers. (And the food and service are great)
Lovely restaurant.
should be a website set up with a list of all the places we can go in the county to eat, stay etc with the new 9% VAT.. works as advertising for the businesses and a database for the customers to browse. any thoughts?
companies should be named and shamed
Hey Daniel, as stated, we’ll be naming from next week on @senatornoone
This is because it made such a fucking ridiculously insignificant difference to begin with…I’m pretty sure nobody is going to be enticed out by a €25 early bird that now costs only…and wait for it…€24.
Correct me if I’m wrong, but trying to entice consumers with a reduction of 4.5% is like trying to entice your dog out to the garden with a dry crackerbread instead of the nice juicy bone he used to get.
Farcical.
The reduction is A start. Mr arsehole
That’s the same mentality as Shane Ross has. We get an interest rate reduction and he now warning of us defaulting. He never mentioned default when we had a higher interest rate.
Shane Ross is only making noise now because Aunty Poppy (Ruth Buchanan, his missus) has retired from RTE, and he needs to keep the Chablis flowing. It’s the only reason he ran for the Dail in the first place.
He has made some admirable arguments in the past, but he also had a few luvvie articles with his name attached courtesy of the Indo, telling us all how wonderful Fingers and Seanie were.
So yes, pretty much a flighty attention whore who follows the populist breeze.
Us Irish are a greedy lot of money grabbing peasants. It was pure greed that dropped us in the shit and pure greed that will keep us in it. We deserve it. What a race of gob shites.
Speak for yourself, not me
I agree that it was pure greed that led to financial collapse but not all Irish people participated in it. It was banks, government, and developers who were the truly greedy, not the ordinary citizen working for a living or the small shop owner. But to say we were all greedy and “gobshites” is an erroneous and simplistic account which equals the blame on the many where in reality it is only the blame of the relative few
I’ve created a Wiki page with the companies in the article. Add more if you know of more. I’ve referenced this article.
Pass it around and add to it if you can. Screw these companies, claiming they could go under otherwise might hold water if many weren’t well established, large franchises.
http://en.wikipedia.org/wiki/Irish-Companies-Who-Failed-To-Pass-On-Vat-Reduction-2011
Just looked at the page Brian
So Milanos petitioned to get the time and half taken away for Sunday work too didnt they?
Implement a mandatory fine of 1 million euro to come into effect in December this year and persistent offenders should have their license to operate and do any future business in Ireland removed.
One million dollars!!!!!!!!
Okay then, make it…ONE HUNDRED BILLION DOLLARS!
McDonald’s in athlone passing on the VAT to customers.
yeah seen a sticker on the door/window of the McDonalds in Dundrum Shopping Centre stating that they lowered prices due to the VAT cut. Noticed some other places as well that have had a similar poster…
Its time for the tax man to hit these people in the pocket who do not pass on the vat rate cut.A fine of 100,000 euro should be brought in and they should be named and shamed.Maybe we should contact our local TDs to see what there going to do about it.
Thick business owners would rather go out of business than cut prices.
Its called rip off ireland.Its our money there taking.I dont care if its 1.00 euro or 50 cent.It all adds up.The fear of a fine of 100,000euro will force them to pass on the vat rate.Tell me if the goverment put up the vat would they say no were not putting it up.I dont think so.Only in Ireland will the vat rate cut not be passed on.Why am i not shocked
For God’s sake! 100,000Euro!!! Insane! There are alot more important things out TD’s should be worried about other than a few euro on someones dinner or coffee, in fairness. Schools and hospitals falling down around us, the roads in an awful state etc. etc. YES, restaurants should be passing on the new tax rate, BUT 100,000 really??? We’re supposed to be keeping our businesses in business!
Great idea Brian. Ill be posting the link to your wiki page on my Facebook and twitter. These companies definitely should be named and shamed. I’m going to make a habit of actually asking any shop I purchase from or cafe/restaurant I visit if they’re passing on the reduction and if not not I’ll be adding them!
Its not there money to keep by not passing on the vat rate cut.In fact i would call it theft.Its pure greed from shop owners and its greed that got this country in the mess that were in.Its time people asked when buying coffee ect has the vat rate been passed on.If not report them.
A lot of Galway eateries appear to have put their prices UP since the VAT decrease.
I hate rainy, cold, arty, Gaelic, dole claiming, shite Galway
Aren’t you a bottle of poison Jumpthecat!
I agree. Galway is a kip.
I would imagine that establishments run to TQM management practices would be glaringly obvious if they did not pass on the rate cut. Independently run restaurants and bistros however only need to adjust portion size and or ingredient composition to maintain or possibly even improve GPs… Just a thought…
I can see many people here don’t own their own business
Does not surprise me that Costa “lot” Coffee has not reduced their prices! Even though they pay their staff peanuts and it’s run by a so called champion of “let’s make Ireland competitive again”
I was in Costa Coffee the other day & they Have reduced the price of their coffee. The girl that served me said they changed their menus & updated their tills within one week of the Vat reduction. it’s difficult enough to run a business in this economic climate without publicly condemning those that have reduced their prices. If you are going to do a name & shame, it’s important to check your facts first!!
I didn’t think it was mandatory for the business to pass on the vat reduction thought it was a choice they had? If this ins the case then they can’t be fined.
We will be publishing the list from Senator Noone’s office this Wednesday -if you want to have a look, you might consider following @senatornoone on Twitter, as it’ll be published there first.
The Gormet store in Kilkenny is the only cafe I’ve seen that passes on the saving!
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