The President of County Carlow Chamber of Commerce says businesses will take a financial hit when the current 9 percent VAT rate for the hospitality sector expires next August.
Finance Minister Paschal Donohoe has confirmed the decision in Tuesdays budget.
Speaking earlier on The Bottom Line, Colin Duggan, who’s also the General Manager of the Woodford Dolmen Hotel, says businesses are trying to get back up on their feet,
“It doesn’t help an industry that is trying to come back to the real world. We would have presold to tour companies on the basis of the 9% vat rate and we’re committed to that and we’ll take a hit on that. Tour companies would have started booking last year for next year, nearly two years ahead and we would commit at that stage..”
He says the timing isn’t right to introduce the change next August,
“Unfortunately they are going to do this is august where it would make more sense to do it at the end of the year. The whole timing doesn’t make sense,” he added.
