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”
