Govt cracks down on VAT cut evaders

The Government is urging motorists to boycott petrol stations who have not passed on a cut in prices that was due to come into force at the strike of midnight on New Year's Eve. However, the Opposition says more resources are needed to police a reduction in VAT and ensure that it is passed on to the public.

The one per cent cut in VAT, announced in the budget last month, is now law and should be passed on to the consumer on a whole range of goods, ranging from fuel to drink. The Government is telling consumers to vote with their wheels and not to use forecourts where garage owners have not passed on the reduction. However, Fine Gael's Denis Naughten says it's the Competition Authority that should be leading the charge on behalf of the consumer. When he delivered his budget speech, the Minister for Finance, Charlie McCreevy, said he would be monitoring businesses to see if they were pocketing the VAT cut.