Restaurants need Covid tax debt break to avoid going out of business

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Opinion: Hospitality sector owes more than €900m in warehoused taxes and needs Government help to deal with this Covid debt overhang via IrishTimesBiz

So what should the Government do to support a hospitality industry that is once again on its knees?

Ever since the Government’s introduction of the Scarp scheme , we have seen a trickle of businesses apply for this rescue process, which is an examinership-light programme. But every business, especially in hospitality, will start to investigate this opportunity to write down debt as we head into the hard and tough winter months.

There is no doubt about it — we will lose a substantial number of hospitality businesses over the next 12 months as the sector restructures. As a State we need to get this right in terms of putting in place a survival package or scheme for hospitality. It seems to me that we are in a continuous battle with Government to showcase the benefits of supporting our hospitality sector across the State, which is stitched into the local, regional and urban economic fabric of the State.

 

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