'Insulting': Hospitality industry reacts to Government's decision to retain 13.5% Vat rate

Restaurants group has warned that 1,000 more businesses could close following the Government's decision

Since the VAT rate was increased to 13.5% in September 2023, a total of 612 restaurants, cafés, gastropubs and other food-led businesses have been forced to close permanently

The Government’s decision not to reinstate the 9% Vat rate for the hospitality industry has been deemed a “devastating blow” for the sector, with fears that Tuesday’s move could push over 1,000 more businesses to shut in the next twelve months.

Despite strong pushes for a reduction in the rate of Vat, Enterprise Minister Peter Burke was unable to secure support from Coalition leaders to enact the move.