Covering sterling prices with stickers on magazines, books and some produce is causing confusion among consumers.
But the growing strength of the pound against sterling may bring some price reductions next month.
In Easons, magazines and comics are about 35 per cent dearer than in the UK. So, while UK consumers pay £2.60 for the magazine Cosmopolitan, consumers here pay £4.02. A spokesman for Easons, which has most of the magazine distribution market in Ireland, said this difference was partly because of currency rates and partly because of the 12.5 per cent VAT charged on magazines in the Republic.
The top rate of VAT was reduced by 1 per cent on January 1st, as an anti-inflationary measure, but there are no immediate plans to reduce the other rates. All taxes are kept under constant review, according to a spokesman for the Department of Finance.
Easons buys sterling four times a year. At present it is still operating at the November exchange rate, but the spokesman said a new cycle would begin in February and prices should come down. The other major distributor, Newspread, also buys sterling every three months.
While there is no VAT on books in the Republic, 12.5 per cent VAT will apply if the book is packaged with a tape or toy. Exchange-rate policies vary from shop to shop. Mr Alan Warnock, the manager of Waterstones, Dawson Street, said the store had applied a 25 per cent exchange rate for the past year. The rate is reviewed monthly.
Hodges Figgis reviews the exchange rate charged weekly, said its deputy manager, Mr Joe Collins. In Iceland supermarkets, where certain products are "overstickered", there appears to be little consistency. So 99p sterling becomes £1.19 in the case of Iceland Gold Ribbon wafers, £1.29 in the case of Penguin bars and £1.39 for McVities Riva.