Government strategy group rejects calls for reduced Vat rate for hospitality

Reducing the Vat rate to 9% for the hospitality industry "would constitute an enormous fiscal transfer of taxpayer’s money to the sector which the evidence available at present does not support”, the Tax Strategy Group stated.

Revenue advised that there would be 'significant operational concerns' in having different Vat rates for the food and accommodation sectors. 

The reintroduction of the reduced 9% Vat rate for the hospitality and tourism sector would constitute an “enormous transfer of taxpayers’ money” to businesses operating in these areas, the Government’s Tax Strategy Group (TSG) has said, calling the proposed taxation measure “regressive”.

The (TSG) is chaired by the Department of Finance with membership comprising of senior officials and political advisers from a number of civil service departments and offices.