The VAT reduction from 13.5pc to 9pc for the hospitality sector will be introduced in Budget 2025, Minister for Finance Paschal Donohoe acknowledged the tradeoffs and consequences linked to this VAT adjustment.
The Department of Finance estimates the cut will cost €500m and diverts additional tax cuts in other government areas. This VAT reduction was a commitment established during the General Election in November last year.
Minister for Finance Paschal Donohoe shared, “This is a commitment which was originally made during the General Election in November last year.”
