Politics

‘It’s not a business viability measure’ - Michael McGrath rules out hospitality Vat rate cut

The finance minister also warned ministerial colleagues that departmental overspends would have consequences

Michael McGrath said a reduced Vat rate would have to be passed onto consumers rather than used to help firms. Picture: Getty Images

Michael McGrath has ruled out any prospect of a lower Vat rate for the hospitality industry being re-introduced, warning that it should not be used to prop up struggling firms.

“I would make the point that Vat is a tax on the consumer, it’s not a business viability measure. So any cut or change to the Vat should result in a change in the price that the consumer is paying and that’s not the argument that I’m currently hearing,” McGrath told the Business Post.