Budget change to VAT & Excise -- Effect on cross border shopping

MI5

With the slight drop in ROI VAT and upcoming increase in UK VAT PLUS the biggish drop in excise duty on alcohol in ROI, will the commute across the border become more or less not worthwhile.
Remembering of course that it would appear that traders in the north seem to have been getting greedy recently and have increased prices somewhat AND petrol going up in the south making the journey more expensive in any case.
Interested to hear comments.

MI5

Patser

The currency difference will mean that things will still remain cheaper in the North than the South (unless as OP suggests the Northern traders kill the golden goose by raising prices). However the difference will drop and IMO that'll dissaude a good few from travelling, especially the further from the border you are with travel costs factored in. And any trade that can be kept down here, hopefully keeping a few €100million extra over the year, will be a well done job, rather than doing nothing and watching the exodus continue.

Tipsy Mac

A 1 litre bottle of Smirnoff today costs £12 today in Sainsburys Newry, even with the reduction it will still be about half the price it is down here.

Noffles

Tipsy Mac wrote: »

A 1 litre bottle of Smirnoff today costs £12 today in Sainsburys Newry, even with the reduction it will still be about half the price it is down here.

Just a single example, so there is still an incentive to travel to the North... I highly doubt the efforts made today are going to dissuade enough people to save "100's of millions".... jeysus that's wishful thinking!

RonMexico

I got a litre of Bombay Sapphire Gin, a 70cl bottle of Captain Morgan and 1 case of 5% Bud for €40 up North.

A few weeks ago I paid €33 for a 70cl bottle of Bombay Sapphire Gin here.

I can't wait to go back up there to load up for Christmas.

baronflyguy

When does the VAT decrease take effect?
Is it midnight like the petrol?

gurramok

A 1L Baileys bottle costs 10quid in NI on their Xmas special offers, normally 14quid sterling which is 11euro and 15.40 euro respectively.

That 1L bottle will cost about 22quid now, reduced from 26quid+ at best price down here in ROI, where is the incentive not to go up north there?

Dannyboy83

I don't plan to type this again tonight; so copy and paste jobby.
I will provide links to back up my claims if requested.

dannyboy83 wrote:

http://www.boards.ie/vbulletin/showpost.php?p=63426222&postcount=20
On drivetime, they said a bottle costing €25 here costs €15 in the North.

This does not provide an alternative choice!
Just means those who have already have no choice (Munster) will pay a little less, while those who have the choice will continue to go up North.

I'm sick of reiterating this , but I'll say it once more:
€750m was lost to contraband cigarettes last year, with the biggest EU hauls of illegal cigarettes and tobacco found at the start of November and Mid November respectively, and 1 in 3 cigarettes smoked in Ireland 2010 will be contraband.

If you want to prevent smuggling, crime and loss of revenue; you decrease the price by €2, from €8.45 down to €6.45.
Now those contraband cigarettes selling for €4.50 per box are no longer attractive.
Result:
0.15 in 4 cigarettes smoked in Ireland 2010 are contraband
€700million gained in new revenue - by affording an alternative choice to those who are determined to smoke regardless.

Implement that with alcohol and you will see a similar effect.
We passed the point of diminishing returns with excise duties a long time ago, the threshold now looks like a little dot from up here.

We happen to have the biggest international carrier in the world terrorizing the airline industry with the same business strategy for a numbers of years now.
All the government are doing is (a) losing their ability to regulate by driving the customers elsewhere and (b) massively stimulating an artificial black market.

paconnors

RonMexico wrote: »

I got a litre of Bombay Sapphire Gin, a 70cl bottle of Captain Morgan and 1 case of 5% Bud for €40 up North.

A few weeks ago I paid €33 for a 70cl bottle of Bombay Sapphire Gin here.

I can't wait to go back up there to load up for Christmas.

hi mate you were roobed on the gin for €33 in my local offie in galway is only €23.99 for bombay gin

RonMexico

Got it in Fine Wines Limerick

http://www.finewines.ie/bombay-sapphire-gin/5010103518864pd.html

I was wrong about it being €33 - it was in fact €31.19

Still a rip-off:mad:

mrgaa1

no effect what so ever - waste of his breath. To make it work he should have cut it much more severely. I agree with Dannyboy83

banquo

Fags and booze excise duty should have been cut waaay more severly if there's to be any real impact, especially since the UK just cut their own VAT.

ejmaztec

I think that anyone with half a brain-cell knows that it won't make a blind bit of difference. I'm just curious as to what's holding Brian Lenihan's ears apart.

ardmacha

especially since the UK just cut their own VAT.

The UK has not just cut its own VAT, it reduced it temporarily at the start of this year and it will be returning to 17.5% on Jan 1. Many people believe that the UK will have to increase VAT to balance their own books.