40 Years of V.A.T.

VAT was first introduced in Ireland 40 years ago today on 1 November, 1972. The introduction of VAT was one of the prerequisites of Ireland's accession to what was then called the European Economic Community (EEC). Since it's introduction, VAT has become an important part of the exchequers indirect tax revenue. VAT was not the first type of indirect taxation in Ireland and replaced turnover tax and wholesale tax. Since its introduction, VAT had been a source of contention at every annual budget.

This radio clip begins with an advertisment for VG supermarkets which claims the introduction of VAT will make no difference to VG prices. This advert is followed by a RTÉ News report looking at day one of VAT. The manager of a supermarket speaks about VAT and future price increases on groceries. There was concern amongst consumers about how the introduction of VAT would affect the price of goods.