The Government should consider ways to cushion the blow of abolishing duty free within the European Union, the Institute of Chartered Accountants in Ireland (ICAI) has said. One suggestion might be to apply the lowest rate of tax to goods bought in what are now duty free shops, said the institute's president Mr Pierce Kent.

In a submission to the Government, the institute said there would be damaging consequences for employment and travel costs. A report from the Department of Finance said the Exchequer would gain between £30 million and £45 million by the abolition of duty free within the EU; Mr Kent said the Government should use some of this cash to alleviate the most damaging effects of the move.