VAT Rate for struggling cafes and restaurants could be cut

Photo courtesy of Garret Ahearn

The Minister with responsibility for Business, Employment and Retail has confirmed the government is considering changing the VAT rate for struggling cafes and restaurants.

There’s been a number of high profile closures in Tipperary in the last month.

Local Senator Garret Ahern has been lobbying for the reduced rate of 9-percent to be re-introduced for food businesses while staying at 13-and-a-half for hotels.

Speaking to TippFM News on his visit to Clonmel yesterday Junior Minister Richmond says he’s behind the move but it would have to be approved by the Finance Minister:

“Garret has been lobbying me intensely on this and I agree with Garret, the decision rests with the Department of Finance. We will make the case to the Department of Finance that we need to respond to the increased costs, we need to keep our hospitality
businesses at the heart of times and villages.

“Garret has been talking about Clonmel, Cahir and Cashel, all the wonderful businesses that he’s working with, we’re going to make sure we put a good case to make sure they stay open, the VAT rate is a key thing that is on the table and being looked at.”