Claims Staggered VAT Increase Would Have Been Better For Hospitality Sector

Photo (c) davidlee770924 from Pixabay via Canva

A former President of the Irish Hotels Federation has expressed fears that many businesses in the hospitality sector won’t be able to endure the VAT rate increase.

The lower VAT rate introduced in the recession to boost businesses will be reversed to 13.5% from January 1st, after the Dáil approved the government’s decision last night.

There’s been a furious reaction from some within the tourism sector to the move, which will raise 466 million for government next year, but also comes as the sector faces Brexit-related uncertainty.


Lahinch Hotelier Michael Vaughan says a staggered increase would have been far more manageable.