An infuriating blunder on VAT
Sir -- A report in last weekend's Sunday Independent gave details of Brian Lenihan's private dinner contrition that his decision to (fleece Irish shoppers) increase VAT was a serious mistake.
The ramifications of his misjudgement cost over €700 million in lost revenue, as consumers sick to the teeth of being taken for a ride here, decided to travel over the border and purchase cheaper goods and benefit from much better value for money.
Unfortunately, what makes this blunder more infuriating is that our Taoiseach Brian Cowen -- a former finance minister -- supported the increase even though the need for people to spend their money here and help boost retail sales was essential.
The need to curb tax hikes on the lower paid in April's budget is imperative.
Having even less disposable funds in the economy will only exacerbate the stranglehold this recession has over the public's personal finances and confidence, which is now at an all-time low, will disappear faster than a dissolved government.
Vincent O'Connell
New Ross
