There are fresh calls in Clare for the government to keep the reduced VAT rate in the hospitality sector, as the Budget approaches.
It was slashed from 13.5% to 9% during the recession in order to give the sector a much-needed boost – now, it’s one of the largest industries in the country and supports around 235,000 jobs.
But certain quarters estimate that the exchequer is missing out on around €500 million a year because the original rate hasn’t been restored.
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However, Chair of the Shannon branch of the Irish Hotels Federation Brian Harrington feels that the amount of revenue coming in with the reduced rate justifies keeping it:
