As the election gets underway, Fine Gael has promised to permanently reduce VAT on food-based hospitality, entertainment, and hairdressing, aiming to provide certainty for businesses.
Taoiseach Simon Harris noted that the proposal excludes the hotel sector, which has led to criticism from other parties.
Sinn Féin has labelled the proposal as “laughable” and “half-baked,” asserting a commitment to reintroducing a 9pc VAT for the broader hospitality sector, excluding hotel accommodation.
Tánaiste Micheál Martin expressed general support for lower VAT for the F&B sector but cautioned that lower rates for hospitality should not unintentionally increase energy VAT rates, resulting in higher costs for households.
