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Small businesses at risk according to economist

Tuesday, 17 November 2020 07:19

Dozens of jobs and small businesses could be at risk due to changes to an Irish tax scheme.

That's according to economist Jim Power, who says Cork's retail and tourism sectors will be vulnerable to proposed changes to the Retail Export Scheme.

Under the current scheme, non-EU tourists can claim VAT back on Irish goods.

However a new bill entitled the Government's Brexit Omnibus Bill 2020, which is currently moving through the Oireachtas, would exclude all purchases under €175 from the scheme.

Economist Jim Power told RedFM News the move would have a catastrophic effect on economic activity, employment and the overall health of the retail and tourism sectors in Cork.

He added that Cork's economy is already under severe pressure due to Covid-19 and other Brexit factors.

"The timing of this could not be worse because the tourism sector and the non essential retail sector is being absolutely decimated by Covid-19.

"It's difficult to be terribly optimistic about 2021, because even if were get a vaccine it's going to be well into next year before it starts to impact on international travel.

"So the background is very very difficult."

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