The price of a humble breakfast roll could rise by 25% if the special hospitality VAT rate is not retained, it was claimed yesterday.
The news comes hot on the heels of recent hikes in the price of alcohol that has seen some pubs charging almost a €10 for a pint. Now increases in the cost of the breakfast staple could be next due to VAT rules around the sale of hot food items.
The levy is charged on hot food in your average deli or forecourt but not on a cold sandwich, so breakfast rolls and other hot sandwiches are in the firing line under the proposed hike. The hospitality sector currently has a special concessionary VAT rate of just 9%, which was introduced to help the struggling sector through the pandemic when it was forced to close and its aftermath.