Vintners Federation calls for alcohol VAT cut

The Vintners Federation of Ireland is calling on the Government to allow publicans reduce the rate of VAT they pay on the alcohol or drink sold.

The Vintners Federation of Ireland is calling on the Government to allow publicans reduce the rate of VAT they pay on the alcohol or drink sold.

At the moment, publicans pay 21% VAT.

However, the group says it should really only be paying 13½% , as it is part of the service industry.

"We believe as a wider hospitality and service industry a reduction in VAT for our sector to

13½% would be massive to us," said VFI president Gerry Mellet.

The call comes as new figures show that more than 7,000 jobs were lost in the pub sector last year, with an average of one pub closing each day.

The VFI is holding its annual conference in Cavan later this morning.

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