A Leitrim Councillor has called on the Government to lower the VAT rate for the hospitality sector. It’s believed the number of restaurants across the country which will close since a higher VAT rate was introduced will be more than 600 in 12 months. The sector met with the Ministers for Finance and Public Expenditure earlier this week, ahead of October’s Budget.
The main pitch from the hospitality sector was to bring the VAT rate back down to 9% for food-led businesses. It's currently at 13.5%, after it was increased nearly a year ago. Leitrim Councillor Sean McGowan is raising the issue at a council meeting next Monday:
Meanwhile, Sligo-Leitrim TD Marian Harkin called for the VAT rate to be lowered to 5 per cent for hospitality businesses outside of Dublin earlier this year. Cllr McGowan believes this is something that could work in the west of Ireland: