Despite implementing what is possibly the greatest giveaway Budget in living memory, the Government has come under heavy and sustained fire in Kerry for not cutting the VAT rate on tourism from 13.5 per cent to nine per cent.
The measures announced by Ministers Jack Chambers and Paschal Doonohoe didn’t deliver the lower VAT rate that had been persistently lobbied for but they did approve a €170 million energy subsidy scheme which will provide around €4,000 to almost 40,000 hospitality and retail businesses which have been impacted by rising energy costs.
Registration thresholds for VAT are also set to rise while the amount an investor can claim relief on under the Employment Investor Incentive will be doubled to €1 million.
But tourism and hospitality industry have lashed out at Budget 2025 claiming it has not gone far enough and that the unchanged VAT rate and an 80 cent rise in the minimum wage will force more restaurants to close.
The Irish Hotels Federation said the Government has failed to respond in any meaningful way to the commercial crisis facing hospitality food-led businesses.
“The Budget does next to nothing to address the enormous challenges confronting our sector while at the same time imposing further costs on thousands of hospitality businesses,” said IHF President Michael Magner.
“It is becoming increasingly clear that government policies are now fundamentally at odds with the long-term interests of our sector and wider tourism industry,” he claimed.
Kerry TD, Danny Healy-Rae said many people in the tourism sector are upset that the VAT rate was not reduced.
“Many providers in the nooks and corners in all the different places of Kerry are very disappointed. Many of them were waiting for this reduction and hoping they could survive but many have closed already and many more will close,” he stated.
KillarneyToday.com: Reaching thousands of readers every day. To advertise call 087-2229761 or email news@killarneytoday.com
