As you all probably know, the government decided that a 21% Value Added Tax wasn’t quite high enough. Starting January 1st, now the Irish Public pays a whopping 23% VAT on most everything they buy. At Sound Computers we have decided to go the other direction. We have decided, not only to absorb the cost of the VAT hike, we are building in a 2% VAT decrease. At the end of the day the VAT man still get his rightful 23%, but we are charging only 19% to the customer and taking the additional 4% from our profits.
We are doing this to take a stand. It doesn’t seem fair that small business everywhere are forced to raise their prices all the time to make the same profit. Hopefully this will make the customer conscious of their spending and how much of it the little guy in the shop actually makes. Good Luck in 2012 everyone!