Dáil Éireann Debate, Thursday - 3 December 2009
73 Deputy Emmet Stagg asked the Minister for Finance if his attention has been drawn to the price differentials between goods on sale in the United Kingdom and this country, despite the strengthening euro; if he has taken steps to address this ongoing problem; and if he will make a statement on the matter. [44883/09]
Amharc ar fhreagraAs the Deputy may be aware, the Revenue Commissioners and the Central Statistics Office (CSO) prepared a report, at my request, on the Implications of Cross Border Shopping for the Irish Exchequer. The report was published on my Department's website on 20 March 2009. The report estimated the likely value of cross-border shopping in 2009 to be in the range of €450m to €700m, with a potential loss in Exchequer revenues arising from reduced VAT and excise yields of between €72m and €112m. In addition, a possible corporation tax loss in the range of €20m to €31m is tentatively estimated. It should, however, be noted that any estimate for corporation tax is provisional and should only be considered as indicative of the potential loss.
The report noted that the main causes of price differentials between goods in Northern Ireland and the Republic, are operating costs, profit margin (mark-up), taxes and the rapid depreciation of Sterling against the Euro. While changes in the standard VAT rates widened some price differentials, their impact however remains small compared to the size of the change in the exchange rate.
The report also noted that there was rather limited availability of quantifiable data on cross border shopping, and with a view to improving the data available, Revenue and the CSO have worked on questions for inclusion in the Quarterly National Household Survey (QNHS) that should facilitate a more detailed assessment of cross-border shopping in the future. I understand that the results of the CSO's QNHS Cross Border shopping module are due to be published tomorrow.
