‘City tax’ suggested after hotels fail to pass on Vat savings

The Government is to be advised to consider introducing a city tax after large hotels failed to pass on lower Vat rate benefits to customers.

A special budget report has also suggested sugar tax-like levies should be considered in sectors to reduce Ireland’s carbon emissions and therefore avoid hefty EU fines. The measures are recommended in the Oireachtas Budgetary Oversight Committee draft report which will be published this week.

Ahead of the budget this year the committee looked at everything from corporation tax, to housing supports, the Government’s fiscal space and existing tax regimes.