VAT Increase

 MBI absorbs the new VAT increase

From the 1st January 2012, the Irish government has, in their wisdom, decided that one of the best ways to recoup the budgetary deficit left behind after giving the majority of OUR money to the banks, is to increase VAT on products and services to a whopping 23%! I really don't think they have an economic brain cell between them. Surely the way to get the economy going again is to get people buying, not making things more expencive which either makes people hold on to their hard earned cash, or pushes the ones who do want to buy to more competitive markets outside of Ireland. 

Think about it like this: You have two food establishments beside each other. The first is a high end restaurant who charges an average of €25 for a main course, the second is a good fast food outlet who serves a decent burger and chips for a fiver. Which one is going to feel the effects of the recession most? When times are tough, luxury and healthy living go out the window. The 'treat' is now the burger and chips rather than the filet mignon.

Taking this into consideration, should the government not be encouraging sales by REDUCING vat? Increased sales would then mean an increased tax take. Here's an example - An item is priced at €100 + vat. At a 23% vat rate 100 sales are made at €123, giving the shop a net income of €10,000 and the vat man will get €2,300. Now, lets say the vat were reduced to 15% and say the shop owner encougages sales by offering a further 15% reduction. This will reduce the overall price of the item to a bargain at €97.75, (€25.25 cheaper). Shoppers go mad because they love a bargain, so the sales figures double to 200 items! This will net the shop owner €17,000 instead of €10k, and the vat man gets an extra 10%+ to €2,550. Everyone's happy. Does this make sence?

Moving Box Ireland is not going to jeopardise sales figures by passing on this latest vat increase to our valued customers. Instead, not only are we going to absorb the 2% increase, we are giving a PRICE FREEZE PROMISE that we do not increase prices on any of our existing products for the next 6 months, and possibly to the end of the year as long as raw material prices remain the same.

Moving Box Ireland constantly strives to offer quality cardboard boxes, bubble wrap, moving kits and packaging at competitive rates. Years of experience in the moving industry means that we know exactly what the customer needs when moving house and our moving kits are designed specifically with this in mind. We also cater for businesses packaging needs also and can offer excellent rates on bulk or repeat orders.

May 2012 be a better year for everyone.

 

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