The Government plans to allocate €1.5 billion for tax cuts in the upcoming October budget, of which €1 billion will go towards reducing VAT for the hospitality sector.
The VAT rate will be lowered from 13.5% to nine per cent for restaurants, bars and cafes.
However, this leaves just €500 million for all other tax measures.
Owner of Hooked and Eala Bhan Restaurant in Sligo town Anthony Gray said that the 13.5% VAT rate had been responsible for 90% of all closures in the industry.
“Common sense has prevailed here,” he told Lunchtime Live.
“Every little, small town and rural village in Ireland has restaurants in it; they’ve been struggling.
“We are waiting, waiting and hanging on with our fingernails here for the nine per cent to be reinstated.”
Photo shows people eating and drinking, in the south city centre of Dublin. Photo: Sam Boal/RollingNews.ieListener Denise said that while she doesn’t think it’s fair to “be pitting [ordinary taxpayers] against the hospitality sector”, “we’re not addressing the issues of the people”.
“Let’s face it, a meal is not going to go down in price overnight if they get the VAT reduction,” she said.
“So, I think that [ordinary taxpayers] are not going to be prioritised in hospitality and I think that’s really bad.
“I think really, really basic issues have to be addressed before the businesses, like school places, cost of food, being able to get through the day, being able to get through the month when you’re on a decent salary.
“Until that happens we can’t be bailing out the pubs and the restaurants.”
Main image: Leaving a tip for the waiter / waitress after a meal in a restaurant. Image: True Images / Alamy. 12 July 2016
