Will ending the 9% VAT rate spell disaster for the hospitality sector?

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The hospitality sector is set to see the current reduced VAT rate of 9% go back to 13.5% at the end of August. Photograph: iStock
The hospitality sector is set to see the current reduced VAT rate of 9% go back to 13.5% at the end of August. Photograph: iStock

With the temporary 9 per cent VAT rate for hospitality set to return to 13.5 per cent at the end of August, what impact could that have on a sector still finding its feet post-pandemic?

Ciaran Hancock gets some insights on the multitude of challenges facing the sector from hotelier Lorraine Sweeney and chef & restaurateur JP McMahon – challenges that already include rising food prices, huge electricity bills, and a staffing crisis across the sector.

Plus, Irish Times Political Correspondent Jennifer Bray on the likelihood of Government extending the 9 per cent VAT rate, and what Opposition parties have to say about it.