Budget to hike hotel Vat rate to 11%

The 9% Vat rate on hotels, B&Bs, and restaurants is to increase by at least two percentage points in next week’s budget, in a bid to raise over €520m, the Irish Examiner can reveal.

Amid tense negotiations between Fine Gael and the Independent Alliance, Finance Minister Paschal Donohoe is resisting calls to limit the increase to larger hotels in Dublin, Cork, and Galway, who some ministers say have “disgracefully” sought to gouge customers.