The Minister for Finance has said the Government accepts that some businesses may not be able to pass on the full cut in VAT announced in yesterday's July stimulus.
Paschal Donohoe said the Government wants all retailers to pass on the 23% to 21% reduction in VAT. But he added that it does recognise that for some retailers the situation is so precarious that they may use this reduction to pass some of it on to the shopper and use some of it to keep their staff employed. "For some retailers, times are so hard at the moment for some of them that they may face a situation where for example if they were to pass on the full effect of the VAT reduction this could create a dilemma for them, where they are looking at, is this reduction actually