Passing on vat cut will benefit businesses

I have echoed calls for businesses to pass on the cut in VAT as it has the potential to stimulate business and generate employment.

Friday's cut in the VAT rate from 13.5 per cent to 9 per cent on tourism and leisure related activities - to aid businesses to cut costs - should be seized upon by all those who have not yet passed on the savings to customers.

We are also in the middle of the peak tourist season and a great opportunity now exists for businesses to capitalise on this saving and to increase their revenues.

This practical measure was a central part of the Government's Jobs Initiative which aims to stimulate growth in key sectors that have the potential to generate employment.

If passed on, these savings have the potential to be beneficial to businesses, workers and customers alike and I would urge businesses to pass it on immediately.