Finance Minister Michael McGrath says his Department estimates that reducing the VAT rate for food and catering services to 9pc would cost the exchequer €545m.
Despite previous consideration by then Taoiseach Leo Varadkar, Minister McGrath ruled out any changes to the VAT rate for the hospitality sector or splitting the rate for restaurants.
Department officials say the current 13.5pc VAT rate for the entire hospitality sector may not be reduced further, and say a temporary reduction to 9pc would cost €764m
The Restaurants Association of Ireland CEO, Adrian Cummins, has called for food and beverage to be decoupled from the general hospitality VAT rate and reduced to 9pc for the sustainability of the sector.
