Business, hospitality industry in NW hoping for retention of 9% VAT rate in budget

There are last minutes calls today from businesses and those in the hospitality industry in the north west for the 9% VAT rate to be retained in tomorrow’s budget.

Sligo businessman Finbar Filan says that while businesses, such as hotels, in Dublin are doing well, there remains what he describes as ‘the same old imbalance between the east and the west.’
Last week, the chairman of the Donegal branch of the Irish Hotels Federation Paul Diver also called for the retention of the 9% VAT rate, particularly because of the uncertainty over Brexit and Donegal’s proximity to the Sterling area.

In Sligo, Mr Filan, like business people throughout the region, will be keeping a keen eye on tomorrow’s budget.

He hopes the expected small increase in the tax bands will be the start of a process that could drive consumer confidence.

And he also wants to see provision in the budget for capital projects in Sligo, such as the eastern bridge over the Garavogue River and the Western Distributor Road.

But his No 1 call is in relation to the VAT rate:

He also would like to see businesses treated the same as PAYE workers when it comes to earned income credits.

And he says there is a need for a special tax designation for rural areas.