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Hospitality sector welcomes VAT reduction to 9%

Brian Lawlor, Group General Manager of the O’Donoghue Ring Collection and Chair of the Kerry branch of the Irish Hotels Federation, has welcomed the announcement that the VAT rate for the hospitality sector will return to 9% following the next budget in October.
The decision was confirmed as part of government formation talks and comes after significant lobbying from the hospitality industry, which has been calling for relief amid rising operational costs and business closures.
“We welcome the government's decision to reduce the VAT rate on food back to 9%. This has been a long-standing request from the hospitality sector, and it's encouraging to see elected representatives responding to the concerns of industry stakeholders," Mr. Lawlor said. "Businesses have faced significant challenges in recent times, with many sadly having to close due to rising costs. We have consistently advocated for a VAT reduction as a measure to offer stability, support, and renewed confidence for businesses as they plan for the future.”
Industry bodies including the Irish Tourism Industry Confederation, Restaurants Association of Ireland, Vintners Federation of Ireland, Irish Hotels Federation, and Licensed Vintners Association have been actively pressing the government to reinstate the reduced VAT rate, which was originally introduced during the COVID-19 pandemic.
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