Picture: Valerie O’Sullivan
A Kerry Fianna Fáil councillor has written to the Minister for Finance asking for the nine per cent reduced VAT rate for hospitality to be reintroduced in the forthcoming Budget.
Cllr Michael Cahill said all the reports he is receiving say that the numbers of visitors to Kerry are well down this year and that is a cruel blow and businesses need to be supported.
“This is a cruel blow following the losses suffered due to Covid-19 restrictions and the wet weather has also put a damper on things this year,” he said.
Cllr Cahill added that hospitality businesses ensure a level of regional sustainability keeping communities alive by providing employment locally and attracting visitors which increases spending in pubs, shops, restaurants, filling stations, post offices and similar businesses.
“I have written to Michael McGrath and made it crystal clear that if the tourism sector is not assisted many will fold this winter. I am aware of at least half a dozen businesses throughout the county that will not be open on October 1st, he said.
“While retaining the VAT rate at nine per cent will not save all of these businesses, it will help save many,” Cllr Cahill added.
“One should also remember that the recent increase in VAT from nine per cent to 13.5% is a 50 per cent increase in your VAT bill at a very difficult time,” he added.
Two of Cllr Cahill’s Fianna Fáil colleagues, Cllr Niall Kelleher and Cllr Norma Moriarty, meanwhile, have also asked Minister McGrath to extend the lower VAT rate until the end of 2024.
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