Officials warned of €1.9bn VAT cut bill

Minister was told the cut would be was a “blunt measure” that would be poorly targeted.

Officials warned a cut in VAT for cafes, restaurants, and fast-food chains would come at an “extremely significant” cost to the taxpayer and would create a lot of “deadweight” by supporting businesses that did not need help.

In a pre-budget submission, Department of Finance civil servants said the measure would apply to all businesses, regardless of whether they were viable or profitable.