Louth Senator and hoteliers call for VAT to be retained

Fianna Faìil Senator Erin McGreehan has called for the lower VAT rate for hospitality to be retained while improving the Temporary Business Electricity Support Scheme (TBESS).

Senator McGreehan said: “With the current pressure on hospitality across the country it’s important we retain the VAT rate for hospitality.

“The current inflationary cycle is putting huge pressure on businesses and we need to continue to give them that support.

“This is especially important for hospitality businesses outside of Dublin where we haven’t seen massive price increases and gouging of the consumer.

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“The process of applying for the TBESS must be simplified.

“In its current format, the scheme is too complicated for businesses to apply for, and this is resulting in many businesses missing out on vital support.

“A simpler and more straightforward application process would ensure that all eligible businesses can access the support they need.

“It is imperative that the TBESS is revised to provide comprehensive support to Irish businesses.

“The ongoing inflation in energy costs as a result of Putin’s war in Ukraine is having a significant impact on SMEs across the country, particularly within hospitality.

“The current support provided by the scheme is not sufficient, and changes must be made to ensure that all eligible businesses can access the assistance they need.

“We must work together to support our local businesses and ensure they have the resources they need to survive and thrive."

Meanwhile, Louth hoteliers have expressed deep concern about the effect of a potential €400m increase in VAT on Irish consumers and overseas visitors.

Following a recent meeting between hoteliers and the wider tourism industry with Ministers Michael McGrath and Paschal Donohoe, IHF Mourne/Boyne/Lake Branch Spokesperson John O’Neill said: “We are urging the Government to retain tourism VAT rate at its current rate. 

“Increasing consumer taxes is the last thing the country needs given the additional inflationary impact this would have on domestic tourism while also making us less competitive in attracting overseas visitors.

“Consumers are already being squeezed by high inflation and soaring interest rates with a real risk they will pull back from spending on tourism and hospitality this year.

“If implemented, the proposed 13.5% rate would mean we would have the third highest tourism VAT rate in all of Europe.