Cashel Chamber of Commerce is calling on the Government to reverse its decision to increase the VAT rate for food businesses in the hospitality industry.
The Chamber advocates for reducing the VAT rate from the current 13.5% to 9% to help save local restaurants, cafes, and pubs from possible closure.
The VAT rate for the sector increased from 9% to 13.5% in September 2023 – since then 612 food-led businesses have been forced to close their doors, and the Chamber warns that more closures are imminent if immediate action is not taken.
Martin Lynch, the Chamber president is highlighting that small and medium enterprises employ over 1.2 million people in Ireland and are the backbone of local economies and adds that the sector is struggling under the weight of rising costs and government-imposed charges.
The average restaurant now faces €100,000 in additional costs compared to 2023 according to Mr Lynch, a situation that he describes as unsustainable
The Cashel Chamber of Commerce is warning of more closures, not only in hospitality but also across the retail, travel, tourism, and entertainment sectors unless the VAT rate is lowered in the upcoming Budget due to be revealed on October 1st.
