Thursday October 22, 2020

Vat cut on hospitality would cost State €320m

Minister for Finance outlined figure in response to parliamentary question as pressure from hotel and restaurant owners builds ahead of Budget

Aiden Corkery

Political Correspondent

29th September, 2020
A 12-month reduction in the 13.5 per cent Vat rate to 9 per cent would be welcomed by the hospitality industry. Picture: Getty

Cutting the 13.5 per cent Vat rate on hospitality and tourism to 9 per cent for the duration of next year would cost the State €320 million, estimates by the Department of Finance suggest.

The government came under intense pressure from hotel groups and restaurateurs to include a cut in the 13.5 per cent mid-rate of Vat as part of the €7.4 billion stimulus package it announced in July.

In the end, the government opted instead for the...

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