Hotels body demands VAT review

IRISH companies should be allowed to reclaim millions of euro in Value Added Tax paid on hotel and restaurant bills.

The Irish Hotels Federation (IHF) is urging Finance Minister Brian Cowen to do his part in ending the perception that Ireland is a "Rip off Republic" by addressing a number of VAT and local authority charge related issues in his Budget for 2006.

The IHF's pre-budget submission presented to Mr Cowen also asks for an extra €15 million in the level of Exchequer funding for tourism marketing initiatives if the downturn in bed nights outside of Dublin is to be reversed. The IHD estimates it is estimated that every €1 spent on tourism marketing brings in €15 in tourism revenue.