Fine Gael has promised to lower the controversial VAT rate for the hospitality sector – from 13.5% to 11% – within 100 days of the new Government if elected.
With the General Election set for November 29, it would mean a change in the VAT rate by the middle of March.
Other parties were quick to criticise the pledge, over the weekend. Sinn Féin said the reduction would not be enough to offer serious help to restaurants and bars currently struggling with the 13.5% VAT rate.
Fianna Fail said the move would result in increased energy prices for households and companies, saying that was why it didn’t change the VAT rate in the October Budget.
However, Fine Gael said it will also roll-out a new cost of living package to offset any damage caused by the VAT change.
