According to the Belfast Telegraph, unlike the rest of Northern Ireland, the retail trade in Derry is being boosted by up to 35% by people from Donegal making possible savings of 20%, leading traders have claimed.
Numbers are expected to increase further when the Republic introduces a new VAT rate of 23% — an increase of 2% — in January.
An increase in VAT of any size has an effect, especially in these recessionary times when people are being extra careful.
Say a flat-screen TV retails at €350 inc VAT @ 21%. A VAT increase to 23% will then raise the shelf price to €356
(i.e. €350/121 = €289 = price net of VAT. €289x1.23 = €356)
Not a lot, except to a savvy and/or cash-strapped consumer…already sensitive to £/€ exchange rates, plus a day-out in the North…
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