9 February 2024

~1 minutes read

Local TD demands Finance Minister reduce VAT rate for hospitality sector

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Local TD demands Finance Minister reduce VAT rate for hospitality sector

The return of the full VAT rate for the hospitality sector is threatening the lifeblood of communities across the country, right down to the smallest village.

That’s according to Deputy Noel Grealish, who has told the Dáil the return of the 13.5 percent rate is causing hundreds of closures.

He outlined the pressures facing the hospitality sector to the Finance Minister – including high energy and food costs, and the recent 12 percent increase to minimum wage.

Minister Michael McGrath said they regret any closures and do not wish to see businesses struggle, but the context of the VAT reduction is important.

He argued the 9 percent VAT rate was a temporary measure during difficult periods, such as COVID and the impact from the war in Ukraine, and was extended several times.

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