A Lahinch hotelier says there’s no doubt a strong argument will have to be made to retain the reduced VAT rate for the hospitality sector.
It follows a Department of Finance report, which states that the 9% rate has met it’s objective, and that demand and employment is unlikey to be substantially affected by an increase to it.
The rate was cut from 13.5 per cent during the recession to boost the sector, but the department’s report says it cost 2.6 billion since it was introduced and that its benefits now indicate a level of “deadweight”.
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Past President of the Irish Hotels Federation, Michael Vaughan of Vaughan Lodge, Lahinch insists that the lower rate is still vital to many businesses:
