Tipperary hoteliers are expressing deep concern about the effect of a potential €400 million increase in VAT on Irish consumers.
The restoration of the 13.5% rate on the tourism industry is currently under consideration by the Government.
However, Clonmel native and General Manager of the Round Tower Hotel in Ardmore Adrian Quirke says this would be coming at a time when consumers, both at home and abroad, are under significant financial pressure in the midst of a cost-of-living crisis.
Also a member of the IHF Adrian says the industry has to be allowed to recover and opposes what he calls an ‘unfair tax’:
“It is just an unfair tax again, the 9% is the rate that it should be at if we go back up to the 13.5 the highest is Denmark , the UK, and then we would be third it is just too high for our country. There would be a pass through effect because at the moment everything is gone up so we are just adding more taxes on to the consumer again so there would be an add up for the customer. The 13.5 is for food and accommodation liquor is a different VAT rate.”
Adrian says it is particularly worrying for those in regions like Tipperary and the South-East who depend on tourism to support livelihoods.
“Our industry is grappling at the moment with missives costs I mean energy has gone up 300%, food has gone up 26%, this is just another tax on the consumer… it will increase the cost of coffee, a meal out and it will increase the cost of a wedding.”
