July 1st – new vat rate of 9% on a broad selection of of services connected to the hospitality and tourism sectors. The rate drops from 13.5% to 9% as part of the Jobs Initiative and the Government hopes it will help to stimulate the struggling sectors.
- It will give them an opportunity to improve service levels which will improve business.
- It will give businesses an opportunity to reduce debt
- It will give businesses an opportunity to invest more in marketing
- It will give businesses an opportunity to invest more in training
- It will give business an opportunity to gain a firmer footing – too many businesses are on the brink.
Passing on price reductions to the consumer is populist and while it would be better to be for the consumer to buy cheaper – it would be better long term if businesses stay in operation in a profitable way – It has to be ok for businesses to make a profit. Its not a crime and for too many years now, some businesses have not been in a position to do this.