Alan Kelly (Tipperary, Labour) | Oireachtas source

I wish to raise a specific issue that my colleagues, Deputies Howlin and Nash, have raised concerning the Bill on the withdrawal of the United Kingdom from the European Union. The Department of Finance has proposed an amendment that would raise the minimum expenditure required to qualify for the VAT retail export scheme, which is basically tax-free shopping, from zero to €175. This means that in order to qualify for a tax-free rebate, a tourist will have to spend at least €175. This is against all trends in other jurisdictions, but it will also have a great impact on small retailers such as jewellery stores and those selling knitwear, crafts and the arts. Any store that is depending on small sales will be significantly negatively impacted. After the enactment of the legislation, the amended requirement will mean that tourists who wish to qualify for this scheme will have to spend €175. By analysis, this will exclude 80% of current expenditure in such shops. Why is the Government doing this? There must be a reason for going from zero to €175. The people who spend money in craft shops or small artistic venues, who buy small mementos, will essentially lose out dramatically. It should not be the case that tax-free shopping is only aimed at the wealthy who are travelling into the country. Those who come into the country and spend small amounts of money in locations such as the type of shops I have outlined will not be able to benefit from a VAT rebate and that will mean such shops will be negatively affected. I urge the Taoiseach to look at the issue.

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