A Lahinch hotelier claims raising the VAT rate for the hospitality sector could have a detrimental effect on the tourism industry here.
It comes as the Department of Finance has recommended raising the rate back to 13.5 percent, saying it would generate 500 million euro for the government annually.
It was dropped to 9 percent as an emergency measure during the recession to protect the industry – a move Fáilte Ireland claims led to the creation of 10,000 jobs in the space of two years.
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Former President of the Irish Hotels Federation Michael Vaughan has been telling CLare FM’s James Mulhall why the higher rate must not return:
