Aldi to reduce prices to pass VAT reduction on to customers

Aldi has over 140 stores in Ireland.

German supermarket chain Aldi have announced that they will reduce the price of their products to reflect the reduction in the VAT rate announced in the July stimulus plan.

Although the Government's VAT reduction, bringing the rate down to 21% from 23%, is only due to come into effect on September 1st, the supermarket has announced they will implement the change in their stores from August 1st.

Earlier today, Táiniste Leo Varadkar said it will be up to retailers as to whether they decide to pass on the cut to customers and reduce their prices, or if they will use it as a means to increase net profits.

“Some might, some might not. It is a decision for themselves depending on their circumstances,” added Mr Varadkar.

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