Anyone who has recently walked down the street in their village, town or even city will realise why the Government decided to cut the top rate of Vat. During lockdown the eerie desolation on our high streets was unnerving at times.
While footfall has increased since social distancing restrictions were lifted, business has not returned to anything near the levels of the 'Boom Mark II' we were experiencing only six months ago.
This was weighing heavy on the minds of Finance Minister Paschal Donohoe, Public Expenditure Minister Michael McGrath and Climate Action Minister Eamon Ryan as they debated how to revive the economy. There are few sectors unaffected by the Covid-19 pandemic but retail has been one of the worst hit.
As the ministers looked for a solution for the sector they realised people held captive by the coronavirus in their homes have amassed record levels of savings. Sure what were they going to do with their money? There's only so many takeaways you can order. Central Statistics Office (CSO) figures published yesterday showed savings have hit their highest level in more than a decade.
The challenge for the Government's economic team was to get people spending the money they had sitting in their bank accounts. Brexit was also not far from their minds - especially with the ever-looming threat of a no-deal scenario.
They hoped cutting Vat from 23pc to 21pc will encourage people to dip into their savings or their disposable income and spend money on something they ordinarily wouldn't buy.
The decision was made at the last minute because they had to weigh up all their options and judge how much money was left for such a major stimulus policy.
The minister did consider extending the waiver on commercial rates, a huge saving for businesses, until the new year but settled on this coming September as it is such a costly measure. The final cost of the six-month waiver is expected to be around €600m.
They also looked at reducing the 13.5pc Vat rate for the tourism and hospitality sector but felt hotels did not pass on the saving to consumers when it was reduced after the crash.
Instead, they announced what they are calling their 'Stay and Spend Incentive', which will allow people to claim back €125 on hotel and restaurant bills when they spend €625. They hope it will put money in the pockets of customers and business owners. It should also create some competition among hotels and restaurants as people shop around for the best offers.
After the success of their Covid-19 tracing app, the Government is expecting to unveil a new app for claiming the tax rebate as early as next month.
People will be able to scan their bill and save it to their app before sending on the details to the Revenue Commissioner who will calculate the saving.
There was an air of relief among ministers following yesterday's announcement. It has been a rocky couple weeks as the new Government bedded in.
There have been a number of distractions but the stimulus package negotiations were not easy either. Donohoe and McGrath worked well together but there were several clashes of ideals between the two ministers and Ryan.
Apart from retaining his leadership yesterday, Ryan had another win in preventing a cut in capital gains tax being included in the stimulus package after arguing it would only impact the wealthy and would give the wrong impression when social welfare benefits were being cut.
This day next week, the Dáil rises for the summer recess and ministers will head off on their staycations. Then it will be September and they'll be straight into drafting a budget. Lots of work ahead.