VAT plan could see Irish stamps costing 58c
The price of a stamp could rocket to 58c if the European Commission succeeds in imposing 21pc VAT on postal services, Fine Gael MEP Gay Mitchell warned.
He said the controversial proposals could fuel inflation and cause serious damage to An Post’s business at a time when it was struggling.
The Government referred the Commission’s plans to the Oireachtas European Affairs Committee, which is chaired by Mr Mitchell.
Previous proposals by the Commission to impose 21pc VAT on postal items weighing more than 2kg were dropped earlier this year.
The new proposals are for all items weighing more than 10kg to be taxed at the standard or reduced rate of VAT.
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