The hospitality sector across Donegal is set to warm up further with speculation that the special 9% VAT rate for the industry is to be extended.
The plan is to be confirmed at today’s Cabinet meeting with Minister for Finance Paschal Donohoe bringing the proposal forward.
The special rate was introduced in 2020 when the hospitality sector was in dire straits due to the Covid pandemic.
It was due to end in August haning already been extended last October.
However, due to the soaring cost of living and high rates of inflation, Mr Donohoe is looking to extend the lower rate for a yet to be determined length of time.
He recently told the Dáil that extending the lower rate until the end of 2023 would cost in the region of €500 million, with a shorter extension not being as costly.
According to the Irish Examiner, the extension may only last until the end of the year.
With the special rate due to cease in August, members of the hospitality industry have been calling for an extension.
