Latte Levy is an unwelcome extra burden on retailers: The Fed
Independent retailers in Ireland say the so-called ‘Latte Levy’, which is due to be implemented in December, will be bad for business and another unwelcome burden on store owners, says The Fed.
From December 1, 2002, the government is to impose a 20 cent levy on every hot beverage single use cup at point of sale, with the tax payable by the person selling the product, i.e. the retailer.
Aiden Roche, a member of the Fed (Federation of Independent Retailers) and owner of the Daybreak store in Co. Dublin, said: “Any price increase is bad for business, especially at a time when the cost of living is rising. This levy is going to push the price of a takeaway coffee over the €3 mark and it is bound to affect sales.
“Reusable cups haven’t really taken off and not many people use them. It’s not going to be good for retail.”
Another Fed member, Tom McDermott from Clonmel, Co. Tipperary, believes the levy is a further burden on retailers.
He said: “From an environmental point of view, I suppose they have to do something, but the tax should be paid at source and not up to individual retailers to collect it and pay it to the government.
“It’s going to create more work in terms of admin for retailers for no return and it’s going to cause confusion at the tills, with people who have a reusable cup paying one price and other customers paying a different price.”