Noonan hints Vat rate may not return to 13.5%

Finance Minister Michael Noonan has given the strongest signal yet that the low rate of Vat for pubs, restaurants, and the hospitality sector will be partially maintained.

The 9% rate was introduced as a temporary measure to boost the sector, but following the creation of 15,000 jobs, Mr Noonan has been under pressure not to reinstate the 13.5% rate.

He had previously insisted that keeping the lower rate would cost €350m, which would have to be found through other taxes.