The high number of hospitality businesses shutting their doors in recent months has led to renewed calls for a reduction of VAT in the industry to 9% in Budget 2025.
The current VAT rate is 13.5% but was previously lowered to 9% in November 2020 to help businesses struggling with COVID closures.and restaurant became the latest landmark in the city to close its doors for good, following earlier closures of Brasserie 66 in Dublin 2 and Token in Smithfield.Restaurant Association of Ireland CEO Adrian Cummins met with Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe for a pre-budget meeting today to discuss closures in the industry.
“We feel we're doing a fair share of contribution to the state coffers in terms of taxation already from hospitality.”It’s led to further calls from Licensed Vintners Association Chief Executive Donal O’Keefe for a reduction to 9% VAT in the upcoming budget. “We stress that the absolute priority is to have a reintroduction of the 9% VAT rate on food,” he said.“VAT at 9% is a proven measure to aid business viability, to help businesses become more sustainable.“It's catastrophic and it’s pure proof that the sector needs aid to improve its viability.
“We also have the highest excises in Europe; the sector is very heavily taxed and cutting taxes is a direct way to help our sector.”Over 570 restaurants 'forced to close' since September VAT hike