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Hospitality Job Cuts To Be Avoided If VAT Rate Cut Delayed - Enterprise Minister

Thursday, 24 July 2025 15:27

Longford-Westmeath TD Peter Burke feels it's important to keep hospitality jobs afloat as a VAT rate cut could be delayed.

The Government is considering delaying the introduction of a VAT rate cut for the hospitality sector. 

Finance Minister Paschal Donohoe said the full year cost of implementing a 9% VAT cut would be up to a billion euro. 

That's two thirds of all the tax cut money the Government plans to have in Budget 2026 - minimising room for measures elsewhere.

The coalition is now considering not implementing the measure until the middle of next year to reduce the immediate cost. 

Enterprise Minister and Longford-Westmeath TD Peter Burke says it's important to avoid job losses in the sector:

Tax Strategy Papers released this afternoon put the cost of the measure at almost €900 million.


But €135 million of that could be saved by not giving the tax breaks to hotels and B&Bs. 


Minister Burke says he isn't conceding to any delay in the rate cut: 

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