A North Clare hotelier believes increasing the 9% VAT rate for the hospitality sector is a political move and is being used as a ‘stick to beat the industry with’.
The special rate is mooted to be increased to 13.5% in Budget 2023.
With just 11 days to go until the budget for 2023 is unveiled, the latest reports cite plans for the special VAT rate for the hospitality sector to be increased from 9% to 13.5%.
The lower rate was first introduced in 2011 in response to the euro currency crisis and remained in place until January 2019 before being reintroduced in 2020 during the Covid-19 pandemic.
A North Clare hotelier has hit out at officials in the Department of Finance for plans to raise the VAT – claiming that they were ‘always against’ the special rate.
Owner of Vaughan’s Lodge in Lahinch, Michael Vaughan, says the rate is now being wielded as punishment for the alleged price gouging of Dublin hoteliers during the summer.
An Ennis hotelier is warning that if the rate is increased, the cost will have to be passed onto the consumer.
Owner of the Temple Gate Hotel, Paul Madden, says the industry is facing into unknown territory this winter as costs across the board rise.
He fears hotels will be the first to suffer as people’s discretionary income is eaten up by the rising cost of living.
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