Irish consumers flock north for lower tax

DUBLIN, Ireland, Nov. 15 (UPI) -- Irish consumers will continue to flood into Northern Ireland to do their Christmas shopping due to its lower value-added tax rate, officials say.

Internal Irish Republic government briefing notes obtained by The Sunday Independent indicate ministers are calling the differential between the United Kingdom VAT rates used in Northern Ireland and those in Ireland "not acceptable" and are urging Deputy Prime Minister Mary Coughlan to reduce them.

"The Tanaiste (or deputy prime minister) may wish to say that it is her strong view that the current level of north-south price differentials is not acceptable," the notes reportedly said.

The Sunday Independent said the briefing notes were prepared for Coughlan before her meeting with retailers' group RGDATA.

Coughlan was also advised such branded products as Denny Traditional Back Rashers were 47 percent more expensive in the Republic than in the North, while Jameson Irish Whiskey was 54 percent more expensive in the south, the newspaper said.

"The opportunity might be taken to explore with (Irish farmers) why there remain such considerable differentials in prices between here and Northern Ireland," said the note.