Motion For Reduced VAT Rates For Hospitality & Tourism Sectors To Be Brought Forward

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The Rural Independent Group of TDs will today move a Dáil Motion today, proposing reduced VAT Rates for the Hospitality and Tourism Sector

The group led by Tipperary TD Mattie McGrath are calling for the immediate introduction of a 9% VAT Rate for the Hospitality Sector and a 5% rate for all Rural Tourism and Hospitality Providers

Deputy Mattie McGrath says “Last year’s decision by the Government to increase the VAT rate on the sector was misguided and imprudent.” The TD says the proposed change is necessary to prevent further closures in the hospitality sector.  Deputy McGrath adds that the aim of reducing VAT is to lower consumer prices, stimulate demand, and boost employment in the sector. “VAT, being a regressive form of taxation, can impact lower-income households, especially when it comes to discretionary goods like hospitality and tourism.” according to the Tipperary TD.

Excluding Denmark, Ireland’s VAT rate of 13.5% for the tourism and hospitality sector is the highest in Europe, a point also made by the Restaurants Association of Ireland in their campaign for VAT Reform.  The Rural Independent Group urges the Government to permanently establish the VAT rate at 9% from Budget night in the context of Budget 2025 due in early October. 

The Motion to be debated in the Dáil today also calls on the Government to publish the overdue national policy on tourism.