The Cork chair of the Irish Hotels Federation says the hospitality sector will be forced to pass the increased VAT rate onto customers when it’s reintroduced next year.
The current 9% VAT rate was introduced during the pandemic to help the sector, however it’s due to rise to 13.5% again at the end of February next year.
Various hospitality groups have called for the lower rate to remain until the cost of living crisis eases, while Cork Business Association have warned the return of the higher rate could see many businesses struggle to survive.
Speaking to RedFM News, Cork Chair of the Irish Hotels Federation Joe Kennedy says increasing the VAT rate is the last thing the sector needs now.
