Dropping the VAT rate is a lifeline for restaurants and bars that serve food.
The Vintners’ Federation of Ireland is welcoming the cutting of the rate from 13.5 per cent to 9 per cent on July 1st.
The federation says it is needed to help bars that serve food, which are struggling with costs imposed by the Government.
Vintners’ Federation of Ireland CEO, Kilkenny man Pat Crotty, says costs have soared, so the VAT cut will help.
“The cost of labour in particular has been government-driven. It has gone up by 40% for food-led businesses in the last four years. Add on to that the pension auto-enrolment and the increase in sick pay.” said Mr Crotty.
“It’s a huge burden. It has moved the goalposts in a way that means a lot of these businesses are really struggling and they need this help and that’s why government did it.” he added.
