There is finally going to be relief for businesses in the hospitality sector this year. A long campaign to reduce the rate of VAT they pay, will end in Octobers Budget.
Many hundreds of pubs and restaurants have closed across the country since the Government ended the 9 per-cent rate it had in place following the pandemic, as a way to ease the burden on them. The rate was increased in 2023 to 13.5%.
The Government resisted re-instating the lower rate last October, nor committing to it in the program for Government following the General Election.
Hospitality groups have lobbied hard and previously felt they were being left behind, while Government put in place measures to help other industries during the cost of living crisis.
Today, Finance Minister Paschal Donohoe confirmed the 9% rate will be applied in the budget.
Fine Gael TD Deputy John Clendennen said he would be working with the Minister to ensure it will take affect in the best possible way.
“We have been unwavering in our commitment to businesses whether it was Covid, the ongoing war in Ukraine and the challenges of inflation and cost of energy.
“This commitment is a long-term step to certainty to a sector which has faced numerous challenges,” Deputy Clendennen said.
