Restaurant sector seek tax breaks

AS the Restaurant’s Association of Ireland (RAI) held it’s 48th Annual Conference at The Europe Hotel in Killarney, the association has called for changes in government policy to ensure that restaurants can stay viable.

The conference heard that one of the major issues facing the restaurant industry is the rising cost of doing business, chief among them the 50 per cent increase in VAT at the beginning of 2019.

Due to this, and the many other rising costs of running a business, the restaurant industry says it is struggling to maintain its profitability. This means, according to the RAI, an average of one restaurant a week is closing its doors and putting staff out of work.

The RAI are also calling for the introduction of tax incentives to allow restaurant owners to provide short term accommodation for staff.

This would allow employees breathing space to find new accommodation when relocating for work, which is critical given the lack of housing in Ireland. The same issue has become a problem for many businesses in more isolated parts of Kerry that are trying to recruit staff.

Speaking at the conference, the CEO of the Restaurants Association of Ireland, Adrian Cummins said the RAI were delighted to be having our annual conference in Killarney.

“We know that the year ahead is going to be challenging for the hospitality industry. We are disappointed that this government are not doing more to support one of the largest industries in the country. In 2017, tourism expenditure accounted for €8.8 billion, and accounted for almost four per cent of all tax revenue,” he said.

“Yet, with the increase in VAT, the shortage of skilled chefs and rising costs of doing business, many restaurants are struggling to keep their doors open. The government needs to show it values the tourism industry by reducing VAT, putting more resources towards processing chef permits and bringing in tax incentives for employee accommodation.”