VAT Cut Boosts Hospitality, but Consumers See No Price Relief

• Ireland is cutting VAT for hospitality and hairdressing from 13.5% to 9% from July 1, 2026, as a permanent measure.
• The government says the aim is to support business viability amid rising costs, not to lower consumer prices.
• The change applies to restaurant/catering services and hairdressing, but not hotel accommodation (except food served there).
• It will cost the state about €232 million for the rest of 2024 and over €680 million in a full year.
• The move has been welcomed by industry groups but criticized by economists and opposition parties as an expensive subsidy that mainly helps larger businesses.

Source: irishtimes.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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