The VAT rate for hospitality and tourism will increase from nine to 13.5 per cent at the end of August.
The Restaurants’ Association of Ireland had appealed to TDs to decouple food and drink outlets from other parts of the tourism economy .
However, Ministers will allow the rate to revert to the higher level.
General Manager of the Ashdown Park Hotel in Gorey, Paul Finnegan, says that this will put more pressure on hospitality businesses in Wexford:
“We have been lobbying the Minister to reconsider this. The margins in hospitality are already being squeezed. We are very dependent on hospitality in Wexford, there are nearly 10,000 jobs in the sector here. This will put a lot of pressure on small businesses in the County.”
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