A Lahinch hotelier is predicting the special VAT rate for the hospitality sector will be retained for 2023 despite plans within the budget to scrap it.
The 9% VAT rate was first introduced in 2011 to counteract the impact of the recession and reintroduced in 2020 following the emergence of the Covid-19 pandemic.
The rate is scheduled to return to 13.5% from February, however Ennistymon Fine Gael Senator Martin Conway is calling for it to be reintroduced on a regional basis instead.
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However, Michael Vaughan of Vaughan’s Lodge in Lahinch says enforcing a 4.5% increase would turn the hospitality sector into ‘tax collectors’ for the government.
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