The Dáil has heard that a café in Oughterard was forced to close its doors due to the Government's failure to bring in a VAT reduction.
The rate was temporarily reduced to 9% during COVID-19, to help hospitality businesses struggling with reduced numbers.
But it was restored to 13.5% late last year - and despite calls for it to be reduced again in Budget 2025 it remained at the higher rate.
Galway West TD Noel Grealish said many businesses will not survive the added pressure - and referenced the recent closure of Conneely's Café in Oughterard.
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