Vat increase for Restaurants and Food Businesses Nonsensical

31^st August 2023

Vat increase for Restaurants and Food Businesses nonsensical and will close businesses

Vat increase on Hospitality is a tax on consumers and will add to inflation

Government must restore the 9% Vat for Food related Hospitality businesses in Budget 2024.

The Restaurants Association of Ireland has described the move by the Government to increase the 9% vat rate to 13.5% as of midnight tonight as nonsensical and will close the doors on many low margin restaurants, cafes and food led pubs across the state. 

The move will add to consumer inflation at a time when Government announced it wouldn’t add to the cost of living, it will move Ireland to the second highest hospitality vat rate within the EU and it will erode Irelands competitiveness as a tourist destination.

The Chief Executive the Restaurants Association of Ireland has said, “The increase is wrong at a time when the country needs to reduce inflation, a vat increase only adds to inflation. Government need to restore the  9% Vat for Food related Hospitality businesses in Budget 2024 and we will me making the case for this when we meet with the Minister for Finance next week. The increase the vat rate is the final nail in the coffin for many small cafes, restaurants and food led pubs.”

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