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Kilkenny hotelier welcomes move to keep reduced VAT rate for hospitality sector

Sinead Burke by Sinead Burke
10/05/2022
in KCLR News
Over 4,000 jobs in Carlow and Kilkenny depend on Drinks and hospitality sector
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The extension in the reduced VAT rate for the hospitality sector has been welcomed by the industry.

The reduced rate of 9%, which was introduced as a Covid measure, will stay in place until February 2023.

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The announcement comes just weeks before the wage subsidy scheme draws to a close.

Finance Minister Paschal Donohoe says the move helps both customers and businesses:

” I do recognise that changing the VAT rate, for consumers at a time of rising prices would be a challenge, but then for businesses at a time when the Employment Wage Subsidy scheme is coming to a full end would also be a challenge for them”

Colin Ahern is the General Manager of the Kilkenny Ormonde Hotel and a member of the local Chamber – he’s welcoming the news:

“The hospitality industry in particular was devastated for over 2 years. We’ve seen a slight recovery in the last couple of months. But that’s in the domestic market. We’re still a long way away from seeing the level of international visitors come back”

 

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