Hospitality sector's 9% VAT rate unlikely to continue

The Minister for Finance has suggested that the special VAT rate for the hospitality industry will be scrapped in the Budget.

Michael Noonan says the special 9% rate introduced two years ago probably won't be renewed at the end of the year.

He says Ireland has lost out on €360m of VAT revenue as a result of cutting the rate for restaurants, pubs and tourism related industries.

He told the Dáil that he'll need to find more money from other sources if the VAT rate is to remain in place.