Rise in hotel VAT could cost jobs
INCREASING the VAT rate on the hotel sector will be a retrograde step and may cost jobs in rural Ireland, according to a Tuam hotelier.
Councillor Tom McHugh of the Ard Rí House Hotel said that when the 13 per cent VAT for the sector was reduced to 9 per cent, the industry had been struggling.
“The hospitality sector was struggling at the time and the VAT rate was reduced for it but any move to change this by increasing it, would be a retrograde step in my view.
“The sector is now bringing in the tourists, so why would they interfere with it? If they do increase it, it will be very short sighted of them because those tourists who are currently getting value for money will very soon start going elsewhere,” he said.
Another public representative who has criticised any move to increase the VAT for the hotel sector is Deputy Eugene Murphy (FF).
Councillor Tom McHugh of the Ard Rí House Hotel said that when the 13 per cent VAT for the sector was reduced to 9 per cent, the industry had been struggling.
“The hospitality sector was struggling at the time and the VAT rate was reduced for it but any move to change this by increasing it, would be a retrograde step in my view.
“The sector is now bringing in the tourists, so why would they interfere with it? If they do increase it, it will be very short sighted of them because those tourists who are currently getting value for money will very soon start going elsewhere,” he said.
Another public representative who has criticised any move to increase the VAT for the hotel sector is Deputy Eugene Murphy (FF).