Connect with us

Business

State exploring ways to exclude fast food from VAT cut

Published

on

Read more on post.

The Government is said to be exploring ways of excluding multinational fast-food chains from a reduced rate of VAT aimed at shoring up the hard-hit hospitality sector.

The Government has signalled that it will reduce VAT on restaurants and food-serving businesses in the budget from 13.5 per cent to 9 per cent to help them fight costs.

The Department of Finance’s Tax Strategy Group has costed the move at €675 million, a sum that would account for almost half the Government’s proposed €1.5 billion tax package. Eoin Burke-Kennedy has the details.

The median income of a person who bought a home last year was €84,400, almost 60 per cent more than the average wage, new data from the Central Statistics Office shows.

The data shows the figure has been rising steadily in recent years, up from €80,100 in 2023 and €75,600 in 2022. Colin Gleeson reports.

More than a quarter of home sales in Dublin in the third quarter involved landlords offloading rental properties, according to estate agent DNG.

The company’s latest report on the capital’s residential market highlighted what it described as “the negative impact” of recent rental sector reforms.

The NFL comes to Dublin: How it became the richest sports league in the world

Listen | 26:19

It said the percentage of DNG sales by landlords or investors exiting the rental market increased to 27 per cent of all sales in the third quarter, up from 20 per cent in the previous three-month period., writes Eoin Burke-Kennedy

“The beauty of Lidl is that it does offer opportunities internationally. But I’m very happy in Ireland. We’ve a lot more to do here. We have significant expansion plans and I’m ready to keep the business moving forward and chasing down our competitors. That’s enough for now,” Lidl Ireland boss Robert Ryan tells Ciarán Hancock in our Business Interview.

There was a softening in mortgage approval activity last month, with approval volumes down 2.5 per cent year-on-year, data from the banks shows.

Banking and Payments Federation Ireland (BPFI), which is the representative group for the banks, said the number of mortgages approved fell by 17 per cent month-on-month and by 2.5 per cent compared with the same period last year, writes Colin Gleeson.

Many economic experts have contended that despite the damage he can inflict on Ireland’s economy, every-so-often Donald Trump is also capable of doing things that work to this country’s benefit.

The latest opportunity for Ireland could well be his plan to impose massive fees on the H-1B visas that the big American tech companies use to bring foreign workers to the US, writes Paul Colgan in Business Agenda.

It’s difficult to remember a time when both the Tories and Labour were simultaneously imploding. Normally one party’s difficulties are a godsend for the other.

But UK politics is fracturing and the established order with it.

“The Conservative Party is over, over as a national party, over as the principal opposition to the Left,” said MP Danny Kruger earlier this month after defecting to Nigel Farage’s Reform UK. Eoin-Burke Kennedy looks at the evidence in his Friday column.

The biggest US-listed companies keep talking about artificial intelligence. But other than the “fear of missing out”, few appear to be able to describe how the technology is changing their businesses for the better. Melissa Heikkilä, Chris Cook and Clara Murray report.

If you’d like to read more about the issues that affect your finances try signing up to On the Money, the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.

Business

Larry Donnelly: In this three-way race for president, everything is still to play for

Published

on

Read full article on post.

image

AND THEN THERE were three.

At last, we know that the Irish electorate will choose one of three – Catherine Connolly, Jim Gavin and Heather Humphreys – on 24 October when deciding who will succeed Michael D Higgins as Uachtarán na hÉireann. 

. Before getting down to analysis of the potential contours of the campaign, two of the hopefuls who failed to get on the ballot merit mention.

Gareth Sheridan, a 36-year-old entrepreneur who returned home from making millions in the United States with grand ambitions, managed to obtain the backing of Kerry and Tipperary County Councils. He was thwarted by the other councils he had targeted in a bid to garner an imprimatur from the required four.

Notwithstanding a baptism by fire in the media, some ill-judged messaging and unforced errors, Sheridan acquitted himself respectably for a political rookie.

Housing, in concert with additional challenges facing his generation in Ireland, was the central issue he raised in his short-lived bid. Of course, fixing this intractable crisis is not in the gift of the president, yet it is appropriately of utmost concern to the Irish citizenry.

Our parliamentarians have not solved the housing conundrum. Whether Sheridan would be willing to run in a future general election is a mystery. His outsider perspective and business credentials might render him attractive to a large cohort of women and men, young and old, who are frustrated with business as usual.

Maria Steen came close, oh so close, falling just two nominations shy of the necessary twenty from Oireachtas members. On Monday and Tuesday, the wind seemed to be with the socially conservative architect and barrister, particularly when the four TDs from Independent Ireland announced that they would row in behind her, followed by Minister of State Marian Harkin.

Steen hit a brick wall, however, in the form of the influential Senator Michael McDowell, who she must have been reasonably confident would lend her his support after she had worked effectively with him last year to defeat the family and care referendums. It has been reported that McDowell declined to even respond to or acknowledge her correspondence.

Maybe that could be considered bad manners, but regardless, that’s politics. The pressure tactics employed by the Steen camp online and elsewhere probably didn’t help her cause either. At any rate, Steen’s core adherents are furious, not just with McDowell and a few of his colleagues in the Seanad, but with what they deem an establishment cabal that was never going to allow a pro-lifer like Maria Steen to advance.

They gloss over the reality that, had Steen gone the council route and begun her quest months previously, she probably would have made it.

Speculation abounds as to why the excellent communicator left it so late.
Advertisement

My own suspicion is that she formed the view latterly that Connolly, Gavin and Humphreys were all vulnerable and that she would emerge the clear victor from the crucial televised debates, thus giving her a chance of actually winning the contest in four weeks’ time.

Nonetheless, those aggrieved are currently pledging to spoil their ballots, to stay home on polling day or to vote in protest for the leftist independent Connolly.

While that space is worth watching, it may be that these declared intentions borne of anger won’t amount to much ultimately in light of the fact that most people aren’t fully keeping abreast of or moved significantly by these developments at this incipient stage.

The state of the race

Now, it is extremely difficult to forecast how this race will unfold. Precious little can be said with any degree of certainty. Let’s assess where the three candidates are situated.

Catherine Connolly has been undeniably buoyed by the endorsement of a united left, despite the visible cracks in that wall. To appeal outside what is a loyal and sizeable base, the passionate advocate for social justice will need to overcome seeds of doubt that have been planted and will continue to be planted with respect to her own ideology and her consequent suitability to serve as president.

Connolly’s inner circle asserts that her negatives are already in the ether, have been ventilated and have been put to bed. They wish. The following are red flags for many and will not go away: her past ties to Clare Daly, Gemma O’Doherty and Mick Wallace, her unwise trip to Syria and her trenchant criticism of Ireland’s key allies at a fraught moment when we are uniquely exposed to swirling dark clouds on the global horizon. When queried on this front by journalists, her attempts to clarify points and reassure the sceptics have been unconvincing.

Jim Gavin has an enviable and impressive CV. That said, the Dublin GAA legend remains an unknown and unproven political commodity. He evidently has gone down well in the one-to-one encounters he has had at the ploughing championship and at other events he has attended.

Yet his media engagements and communication on the airwaves to date have been less than stellar.

Having been ordained as the Fianna Fáil standard bearer by Micheál Martin, Gavin has to be “let loose” in the arena on his own two feet and to articulate the case for why he’s the man for the job, come what may. At the risk of being repetitive, but with the caveat that they are arguably more important for Gavin than his rivals, the high-profile debates could tell the tale.

Conversely, Heather Humphreys has been on the political scene for decades. She is perceived both to be a decent person and a committed public representative. As a Protestant from a border county, she is often portrayed as something of a transformative figure and her prior ministerial role endeared her to politicians in her own Fine Gael and beyond.

She is definitively the Fine Gael candidate, in contrast to Gavin, whose being parachuted in is resented by elements within Fianna Fáil.

Humphreys will be attacked for the missteps of the Government she was part of, though. Some consider her a limited politician and wonder if she has the gravitas typically associated with those who have been selected to be the president and this country’s de facto leading representative around the world. The Monaghan woman retired last year, referencing her health and energy levels. Still, here she is. This campaign will test her capacity.

Initial thoughts? My first guess is that Catherine Connolly will have to fare exceptionally well on first preferences and be substantially ahead of her foes to prevail. My second is that Heather Humphreys will do better on this front than Jim Gavin. My third is that Humphreys will be best placed of the three to draw second preferences.

Mind you, these are merely guesses. I am making no predictions. We are presented here with a rather unusual scenario that few could have envisaged at the start of the summer.

Larry Donnelly is a Boston attorney, a Law Lecturer at the University of Galway and a political columnist with The Journal.

Readers like you are keeping these stories free for everyone…
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article.

Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Continue Reading

Business

Trump announces new tariffs on pharmaceuticals from October

Published

on

Read more on post.

US president Donald Trump announced a fresh round of tariffs, including a 100 per cent duty on branded or patented pharmaceuticals starting on October 1st unless a company is building a pharmaceutical manufacturing plant in America.

No levies will be applied to pharmaceutical imports if companies have broken ground on a US manufacturing plant, or if such a plant is under construction, Mr Trump posted on social media on Thursday.

“Starting October 1st, 2025, we will be imposing a 100 per cent tariff on any branded or patented pharmaceutical product, unless a company IS BUILDING their pharmaceutical manufacturing plant in America,” Mr Trump wrote. “There will, therefore, be no tariff on these pharmaceutical products if construction has started.”

Mr Trump’s announcement was one of several about new industry-focused tariffs set to begin next Wednesday.

Imported heavy trucks will be subject to a 25 per cent duty, kitchen cabinets and bathroom vanities will be hit with a 50 per cent charge, and upholstered furniture imports are to be taxed at 30 per cent.

Taken together, the moves amount to a rapid expansion of Mr Trump’s tariff regime, which he started to erect shortly after taking office. It comes at a time when the president has flexed his executive powers like none of his modern predecessors.

World economy yet to feel full force of tariffsOpens in new window ]

The Trump administration’s trade deals with Japan, the EU, and the United Kingdom include provisions that cap tariffs for specific products such as autos, semiconductors and pharmaceuticals, which means the new higher national security tariffs likely won’t raise them above agreed rates.

The European Union agreed to pay the US a tariff rate of 15 per cent, including on autos and auto parts, pharmaceuticals, and semiconductors, according to a statement released by the White House in July.

Under the trade deal agreed with Japan, “treatment of specific or compound duty rates shall be identical to the treatment provided to products of the European Union,” according to a statement released by the White House in early September.

Asian stocks fell on news of the tariffs. The MSCI Asia Pacific Index declined 0.5 per cent after the S&P 500 dropped for a third session, the longest slide in a month. Asian pharmaceutical stocks slumped.

“Trump is never going to be done with tariffs,” Deborah Elms, head of trade policy at Hinrich Foundation, said on Bloomberg Television. “This is an incredible breathtaking expansion of tariff coverage that will affect everyone including those countries that thought that they have a deal in place under those reciprocal tariffs that are not covered by these sector-specific new applications.”

The posts offered no further details. The pharmaceuticals plan, as described by the president, could allow for wide exemptions for companies with presences in the US. The White House did not immediately respond to a request for more specifics.

US tariffs to have moderate impact on Irish economyOpens in new window ]

The levy on branded pharmaceuticals could raise the average US tariff rate by up to 3.3 percentage points, according to Bloomberg Economics, though the impact may be offset by the exemption for companies building local manufacturing facilities. Singapore and Switzerland are the countries most exposed to the move.

Major drugmakers, including Merck, AstraZeneca and Johnson & Johnson, have announced billions of dollars in planned US manufacturing investments in the months since Mr Trump’s inauguration, following the president’s repeated threats to impose levies on drugs imported from overseas.

“The actual comment from the president is direct but its impact may be somewhere between nebulous and negligible,” Mizuho Securities health-care specialist Jared Holz said in a note. “All major players have some production presence domestically and almost all have announced increased investment directly tied towards local manufacturing.”

Still, some could be left vulnerable. Multinational drugmakers have said they primarily rely on plants in the US to supply the domestic market, but not all of them have broken ground on their promised expansions.

“The countries most exposed to the move are Singapore and Switzerland. The UK also has some important pharmaceuticals exports to the US – its trade agreement with the US mentioned that special rates would be considered in the event of new Section 232 tariff, but no formal rate was agreed. A similar approach seems also to be in place for Japan.”

Johnson & Johnson’s immune-disease therapy Stelara and cancer drug Darzalex are manufactured in Switzerland and Denmark, respectively. Opdivo, Bristol-Myers Squibb Co’ blockbuster cancer immunotherapy, relies heavily on production in Ireland and Switzerland. Novartis AG’s Cosentyx and Entresto also originate in Swiss facilities.

Unless those companies can show they have broken ground on US sites that will take on production, their biggest sellers could face tariffs that would instantly double import costs. Novo Nordisk, for example, is building a new 1.4 million square foot manufacturing plant in North Carolina, while Eli Lilly earlier this year announced plans for four new US manufacturing sites. – Bloomberg

Continue Reading

Business

Trump announces new 100% tariff on some imported pharmaceuticals

Published

on

This post was originally published on this site.

image

US PRESIDENT DONALD Trump has announced a raft of import taxes, including 100% on branded pharmaceutical drugs, to start on 1 October. 

Other measures will include 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture and 25% on heavy trucks.

The additional tariffs risk intensifying inflation that is already elevated, as well as slowing economic growth, as employers getting used to Trump’s previous import taxes grapple with new levels of uncertainty.

Writing on his Truth Social platform, Trump said the tariffs on “any branded or patented” pharmaceutical products would not apply to companies that are building manufacturing plants in the US, which he defined as either “breaking ground” or being “under construction”.

It was unclear how the tariffs would apply to companies that already have factories in the US.

In August, it was announced that pharma and car exports from the EU to the US would be subjected to a 15% tariff rate in a trade deal struck between both parties. It followed months of uncertainty, which included threats from Trump that the tax could rise as high as 250% at one point.

It was not yet clear how these new tariffs, which will kick in next week, would factor into the existing measures.

Ireland is one of the biggest exporters of pharmaceutical products to the US. Pharma exports to US were valued at €19.9 billion for the first two months of this year, almost half of the value of all Irish pharma exports to the US in 2024 (€44.4 billion).

Advertisement

The prospect of prices doubling for some medicines could also send shockwaves to US voters as health care expenses, as well as the costs of Medicare and Medicaid, potentially increase.

Trump said that foreign manufacturers of furniture and cabinets were flooding the US with their products and that tariffs must be applied “for National Security and other reasons”.

He said that foreign-made heavy trucks and parts are hurting domestic producers.

“Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions,” the president posted.

Trump has long maintained that tariffs are the key to forcing companies to invest more in domestic factories. He has dismissed fears that importers would pass along much of the cost of the taxes to consumers and businesses in the form of higher prices.

He continues to claim that inflation is no longer a challenge for the US economy, despite evidence to the contrary. The consumer price index has increased 2.9% over the past 12 months, up from an annual pace of 2.3% in April, when Trump first launched his sweeping tariffs. 

There is also no evidence that the tariffs are creating factory jobs or more construction of manufacturing facilities. Since April, the Bureau of Labor Statistics has reported that manufacturers cut 42,000 jobs and builders have downsized by 8,000.

“There’s no inflation,” Trump told reporters on Thursday. “We’re having unbelievable success.”

With reporting from Press Association

Readers like you are keeping these stories free for everyone…
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article.

Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Continue Reading

Trending