Unite: VAT hike 'to hit poor hardest'
An imminent VAT hike will hit poorer people three times as hard as the better paid, one of Ireland’s largest trade unions has warned.
Unite has demanded Finance Minister Michael Noonan consider his position over the planned sales tax increase to 23%.
Jimmy Kelly, Unite regional secretary, dismissed claims by Mr Noonan that the 2% jump would not hurt the less well off as much as others.
“This is purely and simply wrong,” he said.
Mr Kelly pointed to research by leading think tank the ESRI which showed the impact of a 23% VAT rate.
“The result was simple,” he said.
“A rise as forecast would impact three times more on low incomes than high incomes.”
Mr Kelly said the Finance Minister should either retract his remarks or step down. The union leader said the VAT hike would further stem consumer spending next year and lead to more business cutbacks, closures and job losses.
Unite has called on Labour ministers within the coalition to reject the proposals when they come before Cabinet.
