Vat rate of 9% for hospitality sector unlikely to return in October budget

It is understood Finance Minister Jack Chambers is not keen due to the €535m cost

Within Government, there is some belief that it would be a mistake to give a tax break to restaurants, hotels, and pubs at a time when inflation is below 2%.

A return to the 9% Vat rate for hospitality in October's budget is considered unlikely, despite Fine Gael's lobbying for the move.

Representatives of the hospitality industry have met with members of both Fine Gael and Fianna Fáil, campaigning for the return of the lower rate, which expired in September 2023.