Restaurant closures: Taoiseach defends refusal to reduce hospitality VAT rate in budget
The Taoiseach has insisted that reducing the VAT rate for hospitality would have led to many more small businesses demanding the same. Hospitality and tourism groups have slammed yesterday’s budget – warning that Government’s failure to protest bars, cafés and restaurants will lead to the closure of “a huge number of businesses across the country” in the coming months. The Vintners’ Federation of Ireland described the budget as “devastating” for the hospitality industry, while the Irish Hotels Federation warned that Government had offered “next to nothing” for the sector. Separately, the Irish Tourism Industry Confederation warned that rural tourism businesses will be hardest hit by the failure to protect hospitality. Well over 600 food businesses have been forced to close their doors since the hospitality VAT rate was returned to 13.5%. Just last week, two restaurants that have operated side by side in Terenure in Dublin for many years, Damascus Gate and Dinos chipper, closed their doors. On Newstalk Breakfast this morning, the Taoiseach Simon Harris defended the decision not to reduce the VAT rate. Credit to : Newstalk