The upcoming rise in the tourism and hospitality VAT rate will have a negative impact on business in the city, according to nine out of ten Dublin pubs.
This follows on from the Government’s announcement that the 9 per cent VAT rate for tourism and hospitality is set to increase to 13.5 per cent from the end of February - representing a 50 per cent jump. The Licensed Vintners Association (LVA) says this will impose additional inflation on hospitality at a time when there are widespread costs accumulating across the sector, and they are calling on the Government to extend the 9 per cent VAT rate throughout 2023.
LVA chief Donall O’Keeffe said: “This spike in the level of taxation will certainly have an immediate impact on the cost of eating out. When you consider that pubs account for the joint second highest portion of the Irish foodservice market this seems like a damaging inflationary measure from the Government."
