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

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.

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”