Govt 'must reduce VAT and tax on alcohol'

Retail Ireland Director Torlach Denihan said: “The value of core retail sales, excluding car, fuel and bar sales, was down -9.7% in August, whereas sales volumes were down -4%, showing how prices have been cut across the board. In other words, consumers got more for their money.

"Food sales are still in negative territory compared to last year, as are virtually all other categories of goods. There is some slowdown in the colossal declines in sales volumes in furniture, lighting and hardware experienced in recent months.

"The continued weakness of sterling poses a major threat to the retail sector in the run up to Christmas. We estimate that cross-border shopping costs the Exchequer €430m and that it is too late to wait until budget day to tackle this."

The group wants the Government reduce the excise levels on alcohol by 20% and reducing VAT to 18% to stimulate retail sales.

"We also urge that the political parties ask their councillors to cut commercial rates by 20% when they vote on Local Authorities to set annual rate on valuation over the coming weeks," concluded Mr Denihan.