Senator Lisa Chambers, Fianna Fáil European Election candidate for the Midlands North West, has welcomed the today’s confirmation by Minister for Finance Michael McGrath that he will give consideration to the 9% VAT rate for the hospitality sector ahead of Budget 2025.
Speaking at The Global Economic Summit in Killarney, Minister McGrath indicated that all tax heads will be reviewed in preparation for the upcoming budget, highlighting the prioritisation of available resources to address various needs within the economy. While he cautioned that not all demands could be met, he confirmed that the 9% VAT rate for the hospitality sector would be considered.
Senator Chambers recently facilitated a business breakfast at Breaffy House Hotel, Castlebar, which was attended by Minister McGrath. At that event, every hospitality business present raised the issue of the VAT rate.
"I am delighted to hear that the 9% VAT rate for the hospitality sector will be considered ahead of Budget 2025, especially given how vocal businesses were about it at the event in Castlebar," Senator Chambers said. "This is an essential measure for supporting our hospitality industry, which plays a crucial role in our economy, particularly in regions like the Midlands North West that rely heavily on tourism."
Senator Chambers emphasised the importance of maintaining the reduced VAT rate to ensure the continued recovery and growth of the hospitality sector. "The hospitality industry has faced unprecedented challenges in recent years. Maintaining the 9% VAT rate is vital for helping businesses stay afloat, protecting jobs, and encouraging further investment in this key sector," she stated.
Minister McGrath acknowledged the constraints on available resources and the need to make strategic choices. "While we can't promise everything, it's encouraging to know that the 9% VAT rate is on the table for discussion. This demonstrates a commitment to supporting our hospitality sector," Senator Chambers added.
Senator Chambers also stressed the broader economic benefits of sustaining the reduced VAT rate. "A thriving hospitality sector not only supports local businesses and employment but also enhances Ireland's appeal as a tourist destination, contributing significantly to our overall economic well-being," she noted.
In conclusion, Senator Chambers called for continued support and engagement from all stakeholders to ensure the best possible outcomes for the hospitality industry. "As we approach Budget 2025, it is crucial that we advocate for measures that will strengthen and sustain our hospitality sector. I look forward to working with my colleagues and industry representatives to achieve this goal," she affirmed.
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