Returning to 9% Vat rate 'would cost well in excess of €700m'

The minister denied that the closure of over 570 restaurants, cafes, and other food businesses since September 2023 signals the death of city centres. Picture: Burak K/Pexels

The decision on whether to return to a lower Vat rate for the hospitality sector is not just one of "commitment and courage" but also one of cost, the minister for public expenditure has said.

Hours after celebrity chef Dylan McGrath announced the immediate closure of two high-profile Dublin city restaurants because business is "simply not sustainable anymore", Paschal Donohoe said that returning to the 9% Vat rate would cost well in excess of €700m'.