The incoming government plans to reduce the VAT rate back to 9pc for food-based hospitality, entertainment, and hairdressing in the upcoming budget to support the sector.
Discussions between Fianna Fáil and Fine Gael have led to an agreement on this VAT reduction, signaling cooperation in addressing fiscal policies.
Adrian Cummins from the Restaurants Association of Ireland, said this is a pivotal moment for small and independent eateries, emphasizing the importance of ongoing support to prevent further closures: “The reported reinstatement of the 9pc VAT rate for the food-led hospitality sector from the next Budget is greatly welcome.”This marks a significant victory for small, independent restaurants, pubs, cafés and other hospitality businesses which, in total, employ 270,000 nationwide. Of course, my thoughts are also with those business owners that were forced to make the heartbreaking decision to close due to rising, uncontrollable costs in recent times.”
