9% VAT Rate for Hospitality Sector Must Be Maintained
North Kildare Chamber has today (02/10/13) called for the Government to maintain the 9% VAT rate for the hospitality sector as a matter of urgency. The call came at a meeting of the Chambers Ireland Chief Executive’s Forum.
Speaking this afternoon, Allan Shine said “The 9% VAT rate is currently going a long way to keep many businesses alive in this sector. There must be no attempt to raise it in this month’s Budget. While there is a perception that the hospitality sector is recuperating, this is only true for certain areas. Many regions in Ireland continue to suffer economically and rely disproportionately on the hospitality sector to drive economic activity.”
“The major market for tourism in Ireland is the UK, which has not picked up since the decline in tourism post 2008. As a result, the market is intensely price sensitive and would react negatively to any increase in prices in Ireland. The hospitality sector has a real chance at recovering, particularly in this year of the Gathering, and anything that jeopardises that is counter productive,” he concluded.