Restaurateurs seek ‘sunshine tax’ cut

Restaurateurs have hit out at Dublin City Council for raking in a “sunshine tax” on outdoor tables and chairs.

Figures released by the Restaurant Association of Ireland show the local authority made over €450,00 from outdoor seating charges last year. These are the fees paid by restaurants, cafes, coffee shops, and pubs to put customer seating outside their premises.

The association said at a recent meeting with the council, the local authority confirmed that the scheme costs €150,000 to administer, and is therefore making a profit of over €300,000.

Adrian Cummins, chief executive with the RAI, said that the fees essentially amounted to a double taxation as restaurants in the capital are already paying an average of €16,000 in rates.

“These fees are applied based on the number of tables on a public footpath outside a premises plus an annual licence fee,” said Mr Cummins. “This is a double taxation measure.

“The local authority rates are already so high that these charges threaten to cripple a business that employs local people, uses local produce and is vital for local business.”

In order to use outdoor furniture, restaurants must serve food that can be served to the public and that can be eaten on site. Planning permission is needed for street furniture, and council officials carry out on-site consultations at every establishment seeking a license.

RAI data shows the council total of €325,000 in outdoor seating charges in the Dublin 2 area. This was followed by €70,000 in Dublin 1, €15,000 in Dublin 6, €9,000 in Dublin 8, and €4,000 in Dublin 7. Dublin 3 netted the local authority just €716.

Mr Cummins said it was “ludicrous” that hard- pressed Dublin businesses were having to pay what was essentially a “sunshine tax”.

“From a survey carried out among RAI members across the entire country, it was found that a restaurant’s annual rates bill ranges from €980 to €150,000, averaging at €15,813. That kind of figure is ludicrous,” he said.

The association has called for a 70% reduction on the outdoor seating tax “with immediate effect”.

“We want a reduction in this extortionate tax on our industry and to stop the profit making by Dublin City Council on the backs of struggling business. We want to see this reformed, we want to see it on a cost neutral basis and we want the reduction in line with what it costs to administer the scheme,” he told RTÉ.

A working group has been established by the council to provide recommendations regarding street furniture. The group is looking at licensing, costs, outside city centre charges, and inspection costs.