Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
THE GOVERNMENT HAS announced that a special VAT rate for the hospitality sector is to be extended until early next year.
The special 9% rate for the hospitality sector was introduced in 2020 in a bid to lessen the impact of the Covid-19 pandemic.
It was due to lapse in August this year, but will now be retained for a further six months until 28 February 2023.
The extension will cover the same goods and services as the original measure, including restaurants, cinemas, theatres and museums, at a cost of €250 million.
Finance Minister Paschal Donohoe brought a memo to Cabinet to extend the lower rate.
Speaking following the Cabinet meeting, he said that the tourism and hospitality sector was “unique impacted” by the public health restrictions put in place throughout the pandemic.
“Through no fault of their own, bars, hotels and restaurants had to close on multiple occasions to help the country make its way through the worst of the public health crisis,” he said.
“The Government put in place unprecedented support for the economy, with the wage subsidy scheme supporting the incomes of citizens across the country. The accommodation and food services sector was the most supported by the employment wage subsidy scheme, to ensure that workers maintained the link with their employers and to give businesses the best possible chance to weather the pandemic.”
He said extending the VAT rate will provide further support to the tourism and hospitality sectors over the busy November/December period and into the early New Year.
No further extension to this measure is envisaged, meaning the 13.5% rate will apply to these sectors from 1 March 2023.
Donohoe also said that the end of the wage subsidy scheme on 31 May will be a challenge to some hospitality businesses.
“It is a very considerable change in the support that businesses in our economy have been receiving, but we need to bring the scheme to an end,” he said.
“The Government in December laid out very, very clearly what we would do in relation to the future of the employment wage subsidy scheme. We’ve implemented that. All non-hospitality businesses ceased to participate in the scheme last month, and we now have an important core of our hospitality sector still in the scheme.
In terms of the future, the reason why we have maintained the employment wage subsidy scheme the way we have and the reason why we are making the 9% decision today is to give those businesses every chance of being viable in the years to come.
Ahead of the Cabinet meeting, Green Party leader Eamon Ryan said that the rate changes will be timed to ensure that the hospitality sector is not adversely affected.
He said that “when we go into the dark winter, it’s difficult for hospitality – we don’t want to change it then.
“It’ll be timed in a way that gives the hospitality sector the best chance to get back on its feet. It will be brought back up, but it will be done in a way to make sure it doesn’t adversely hit the industry.”
Minister for Tourism. Culture, Arts Gaeltacht, Sport and Media Catherine Martin said the Hospitality and Tourism Forum has repeatedly raised the importance of extending the lower VAT rate for the entirety of 2022.
“I have pressed on this issue for several months now and I know that this extension will give the sector time to rebuild and consolidate after a harrowing two years under Covid-19. The extension will promote business survival and support employment in the industry,” she said.
Groups representing the sector welcomed the move. Adrian Cummins of the Restaurants Association said “it will help businesses ahead of a difficult tourism season.”
“Our Association will be advocating for a continuation of the 9% vat rate to the end of 2023 at least,” Cummins said.
In response to a parliamentary question last week, minister Donohoe said Revenue informed him that the estimated cost of extending the 9% rate for the entirety of 2023 would be in the region of €500 million.
Groups representing the sector welcomed the move. Adrian Cummins of the Restaurants Association said “it will help businesses ahead of a difficult tourism season”.
“Our Association will be advocating for a continuation of the 9% vat rate to the end of 2023 at least,” Cummins said.
In response to a parliamentary question last week, minister Donohoe said Revenue informed him that the estimated cost of extending the 9% rate for the entirety of 2023 would be in the region of €500 million.
However, it is not believed that the extension will run for that length of time.
Additional reporting from Christina Finn and Jane Moore
To embed this post, copy the code below on your site
The foods bland and its expensive, not a winning formula.
It’s also incredibly unhealthy.
Not only that, it tastes delicious.
If going down the fast food route then I’d definitely do one of those Italian choppers -Borza, Macaris etc. Failing that I’d have Burger King before McD’s!
People who like to go on and on about not owning a television also don’t go to these places.
I stopping going to MacDonald’s several years ago even though I like their food. I just got tired of how they treat the communities they operate in, bullying their way through local planning laws, suing anyone who stands up to them, marketing directly to schools and kids sporting clubs.
‘modern, progressive burger company’
Yep
I think all chain food is crap: McDonalds, Burger King, KFC, Supermacs and Costa Coffee etc.
Costa and Starbucks have the worst coffee. Complete muck.
Uh huh. Costa coffee is bitter shite. Starbucks a grade or two better.
Hold on, you’re telling me that Starbucks sell coffee now?
Insomnia is decent though…
How can anyone even taste coffee with the amount of sugar, milk and general muck added to it?
McDonalds do great coffe
Now, I think it’s the other way round! Costa at least have nice cups and good cakes. Chacun à son goût!
They do, Thomas and it’s cheap as chips!
Mac Cac. Chomh blasta le himeall mo thóna!
I honestly don’t get why people eat in McDonalds! The food doesn’t fill you. You’d nearly need to eat the entire menu to feel full after it. Everything on the menu tastes like syrup dipped in vinegar (except the drinks which just taste like syrup). And it has no nutritional value. I get that people like to get the odd bit of fast food (and I do like a good Italian chipper), but why go for something that tastes disgusting, offers no nutritional value and leaves you starving 15 minutes later?
They give you a toy with the Happy Meal :)
It’s that long since I ate in a McDonalds that I had entirely forgotten about Happy Meals. Still, that’s hardly an incentive for me! Oh this talk of food is making me hungry! I think I’ll have a nice half-pounder with cheese, chips, onion rings and a battered sausage tonight! :)
Ronald will qualify for job seekers allowance so no sweat
You put one scabby gherkin in your budgets, what do you expect? Never mind the chips that never go off and the nuggets made of slime and ammonia. And what happened to the turd burglar? Did he die? Oh wait, that was burger king.
‘Our’ Supermacs are mad expensive and portuons are scabby aswell. My local chipper does a fresh fillet chicken burger, with all the dressing, large chips (that would feed two people) and two cans of coke etc for 7.20 euro.
Supermacs the other night My order was one Chicken Breast Sandwich Meal and one small chips (both portions were tiny) and it came to 10 euro 40 cent!!!
Im not a big fast food eater but appreciate the price difference.
Not sure how it is in Ireland now but in Germany at least Burger King here has veggie options and other alternatives to the traditional “burger and fries” fast food menu. I had McDonalds a few weeks ago for the first time in years and it was so bland. I’d much rather spend another euro or two and get a healthy, filling meal somewhere else.
As a kid Coming from the country always Thoght it was suppose like a magical place. first time i went was in.Dublin when i was 16. Your local chipper is much more fulfilling
A prerequisite for any restaurant should be that they serve food. McDonalds doesn’t qualify. I’d take my chances with a 20 a day habit sooner.
Janey Mac that’s bad.
It’s muck and it treats its staff the same way so good luck to it.
I’d rather eat the packaging the food comes in
MacDonalds can be a handy quick bite to eat. The thing that gets me with them the last 10 yrs or so is that when you place your order they wait for the money rather than go get it while you sort it. This leads to longer cue’s .
If you’re going to eat that crap, here’s a suggestion have the right amount in your hand.
I hear they put the prices on their menu display ‘ s.
Give me super macs any day
Lose the clown,. He sure is scary, more suited to a Stephen King novel.
I love the irony in their sponsorship of the Olympics.
I eat it every now & then as a teenager, if I was out shopping with friends stopped when I Sussed mcds= headache. Total muck.
Cannot understand how i get thumbs down while something as ridiculous as a hambuglar gets a thumbs up…..
Shanghai Husi are OSI, an American company who supply McDonalds worldwide. They are one of many Western companies who think they can act like complete cowboys in Asia to cut corners and maximize profit.
Well they would definitely have more of my business if the Big Tasty was always on the menu. Mmmmm :)
There are absolutely no stereotypical Irish comments at all here.
Not one person is begrudging the success of anyone else.
This is a good news story, even for a fast food joint the whole place mings something awful
have your say