Covid-19 could cause major drop in VAT



VAT and similar taxes could fall by up to 6.7 billion euro this year because of Covid-19.

If a vaccine is found in the coming months, the ESRI suggests household spending could fall by nearly 12 per cent.

But if a lockdown's reintroduced for 12 weeks from October, it says household spending would fall by 20 per cent.

This would result in a revenue reduction of between 3.9 and 6.7 billion euro in 2020.