Income tax warning as shops enjoy small boost
THERE is fresh hope for the Main Street as consumers return to the shops – but high income taxes are having a detrimental impact on consumer spending, a new study reveals.
Retail sales figures reveal that consumer spending has marginally increased over the past year with a modest 2.2pc increase in sales volumes.
Retail Ireland predicts that 2014 will see the start of a meaningful recovery in the sector.
However, it warns that intense competition meant many retailers are only just surviving.
It also warned against any increase in business costs, and called on the Government to cut income tax to boost spending.
Its report also cautions that the value of sales has remained stagnant, which shows retailers are not out of the woods yet.
However, Retail Ireland director Stephen Lynam said there was nevertheless cause for cautious optimism.
"Retail has been through the horrors, but the outlook is starting to look up," he said.