Donegal hotel boss says VAT increase was ‘a sucker punch no one saw coming’

The chairman of the Donegal branch of the Irish Hotels Federation has the budget announcement of an increase in the VAT rate for the hospitality industry as ‘a sucker punch no one saw coming.’

Minister for Finance Paschal Donohoe has confirmed the reduced VAT rate of 9% for the hospitality sector will expire at end of August 2022 as planned.

Paul Diver, of the Sandhouse Hotel in Rossnowlagh, says it will be a severe for the hospitality industry in Donegal, which has to now compete with Northern Ireland.