Possible to split Vat rate for hospitality, Varadkar tells party

Politicians at the meeting called for the lower rate of 9% rate to be set for pubs and restaurants struggling to remain open

Politicians at the meeting called on the Government to consider splitting the hospitality VAT rate and give the lower 9% rate to pubs and restaurants struggling to remain open.

Splitting the Vat rate for the hospitality sector is possible in Ireland, Taoiseach Leo Varadkar has told a private Fine Gael meeting.

At the Fine Gael parliamentary part meeting this evening, several TDs and Senators raised the rising cost of doing business, particularly for the hospitality sector.

Among the issues raised was the Vat rate for the hospitality sector, which returned to 13.5% in the most recent budget after remaining at 9% across the pandemic.

Politicians at the meeting called on the Government to consider splitting the hospitality Vat rate and give the lower 9% rate to pubs and restaurants struggling to remain open.

This would mean that hotels and other accommodation providers would continue to pay the existing 13.5% Vat rate.

While Mr Varadkar said that the Vat rate would be a matter for October’s budget, he did concur with TDs and senators that it would be possible to split into two separate rates.

It comes just days after Finance Minister Michael McGrath said that he had no plans to revisit the contentious issue despite pressure facing the hospitality sector. 

Instead, Mr McGrath said that he is focused on adding further flexibility to the tax warehousing facilities.

“Were we to reopen the budget, there would be many, many calls from sectors who would make the case for additional support and funding,” said Mr McGrath.

Asylum seeker accommodation

The private meeting also heard about the Government’s plans to provide new purpose-built accommodation centres for asylum seekers, which were described as being “some months off”.

Mr Varadkar also updated TDs and senators of the ongoing Garda investigations into arson attacks at a number of proposed international protection accommodation centres.

He said that investigating Gardaí are anticipating that arrests will be made over the arson attacks.

The Taoiseach also spoke on the expected restoration of powersharing in Northern Ireland, with the Government still awaiting the finer details of the deal between the DUP and the British government.

However, he said that he was “optimistic” that both the Assembly and Executive would return to work shortly.