Hospitality sector set to retain low rate of Vat

Hotels and restaurants are set to keep their lower Vat rate in the forthcoming budget.

The cut in the Vat rate from 13.5 per cent to 9 per cent has been credited with creating and maintaining 31,000 jobs in the sector since it was introduced three years ago.

But it costs €350 million per year and the industry has already been lobbying ministers to ensure that it remains in place.

It is understood ...