andMr. McQuillan asked the Minister for Finance what is the expected cost of living increase in a full year of the implementation of the two and a half per cent turnover tax as paid on goods normally considered in assessing the cost of living figure.
Ceisteanna—Questions. Oral Answers. - Retail Turnover Tax.
6.
It is not possible to say precisely what effect the turnover tax will have on the cost of living index figure as it is not known what price adjustments will be made by retailers with a view to recovering the tax for which they are liable. If, however, the price of the items in the cost of living index figure which are not excepted from the turnover tax were increased by 2½ per cent, it is estimated that the index figure would increase by about 2¼ per cent.
7.
andMr. McQuillan asked the Minister for Finance whether the Government intend to prohibit the proposed increase in taxation from being recovered by retail distributors in the form of increased price to the consumer of essential commodities such as bread, butter, tea, sugar and similar articles.
8.
andMr. McQuillan asked the Minister for Finance whether it is a fact that there will be no increase in the price of butter following the imposition of turnover tax; and, if so, what are the other commodities about which the Government are prepared to give such an undertaking.
I propose, Sir, with your permission, to take Questions Nos. 7 and 8 together.
It is not intended in connection with the turnover tax to interfere in any way with the present freedom of traders to fix the prices of the commodities they deal in. Consequently, I am unable to say with certainty whether or not the price of butter, or indeed, of any other commodity, will in fact be increased. I am satisfied, however, that the force of competition will operate against undue increases, particularly in the case of the commodities mentioned in the Deputies' question.
Is the Minister aware that the effects of the competition of which he speaks may close down a lot of small shops?
That is another question. That would only prove that competition is very keen.