Chambers welcomes consideration of move to 9% VAT rate for hospitality

Senator Lisa Chambers, a Fianna Fáil European Election candidate for the Midlands-North-West, has welcomed the recent confirmation by Minister for Finance Michael McGrath that moving to a 9% VAT rate for the hospitality sector will be considered ahead of Budget 2025.

Speaking at The Global Economic Summit in Killarney, Minister McGrath indicated that all tax heads will be reviewed in preparation for the upcoming Budget. He highlighted the need to prioritise available resources to address various economic needs while cautioning that not all demands could be met. Nevertheless, he confirmed that the 9% VAT rate for the hospitality sector would be on the table for consideration.

Senator Chambers recently facilitated a business breakfast at Breaffy House Hotel, Castlebar, attended by Minister McGrath. At this event, hospitality businesses unanimously raised concerns about the VAT rate.

“I am delighted to hear that the 9% VAT rate for the hospitality sector will be considered ahead of Budget 2025, especially given how vocal businesses were about it at the event in Castlebar,” Senator Chambers said.

“This is an essential measure for supporting our hospitality industry, which plays a crucial role in our economy, particularly in regions like the Midlands-North-West that rely heavily on tourism.

“The hospitality industry has faced unprecedented challenges in recent years. Maintaining the 9% VAT rate is vital for helping businesses stay afloat, protecting jobs, and encouraging further investment in this key sector,” she stated.