Fears more local businesses may close over VAT rate

There are fears that more local restaurants and cafes will close if the Government doesn’t step in.

Many have already shut their doors permanently across the region due to a number of factors including rising costs, the increase in VAT rate and lack of tourist accommodation.

Finance Minister Michael McGrath last week signalled that the 13.5% VAT rate for the hospitality sector wouldn’t be revisited.

But Sligo Leitrim Independent TD Marian Harkin believes that it has come to a stage where an urgent review is needed.


Local Fianna Fáil Councillor Tom MacSharry meanwhile, says there is a “perfect storm” against small operators which is forcing them to consider whether to continue their business or not: