Vat hike could lead to 24,000 job losses, report suggests

The State reduced the hospitality Vat rate from 13.5% to 9% to help hospitality businesses survive the impact of the pandemic. However, the current plan by Government is to put the rate back to 13.5% in March

It is estimated that about 243,900 people were employed in the tourism industry last year.

The expected hike in hospitality Vat could lead to 24,000 job losses by 2023, an expert has warned in a new report.

The report titled, The Economic Rational for Extending the 9% Vat rate beyond February 28, found the planned increase this year would further undermine the competitiveness of a sector that is currently under significant pressure and facing many challenges in 2023.