THE leader of the Social Democrats, Cork South-West TD Holly Cairns, has called for Vat to be split food and accommodation businesses, for the purposes and cut to 9% for food and beverages.
Deputy Cairns said on Saturday that large hotels in Dublin ‘cannot and should not be compared to a small cafe in West Cork’ when Vat is applied.
‘Small hospitality businesses are the backbone of so many of our cities, towns and villages. Regrettably, many of those businesses are now facing closure – with hugely negative impacts on staff, suppliers and the wider community,’ she said.
‘This is a particularly serious issue in rural areas where small cafes and restaurants are the lifeblood of local economies.
‘A major hotel in Dublin, charging exorbitant rates for rooms, cannot and should not be compared to a small cafe in West Cork.
‘For that reason, the Social Democrats would split food and accommodation businesses, for the purposes of Vat, and apply a reduced 9% Vat rate on food and beverages.’
Restaurauteurs in West Cork made a plea to Government before the Budget for Vat to be reduced from 13.5% to 9% or many would go out of business, but there was not reduction in the Budget.
With the election campaign now in full swing, Sinn Féin also proposes a reduction in Vat to 9%. Taoiseach Simon Harris outlined Fine Gael’s plans for an 11% Vat rate for food based hospitality, entertainment, and hairdressing, along with a system of PRSI rebates for small businesses.
Fianna Fáil is not proposing a Vat reduction but Tánaiste Micheál Martin who was campaigning in Cork on Saturday said the party plans a €30om business support scheme.
But Deputy Cairns claimed ‘the reality is the outgoing government has been unable to target supports at businesses in an accessible and efficient manner’.
‘Election promises coming from some coalition partners now, pledging belated support to small businesses, are too little and too late.’
