Pub lobby renews call for alcohol VAT cut

THE Licensed Vintners Association (LVA), the Vintners Federation of Ireland (VFI) and Drinks Ireland have said a VAT reduction on on-trade alcohol is urgent following the government’s decision to postpone the reopening of pubs until at least August 10.

The three organisations have proposed a temporary reduction in the VAT rate for on-trade alcohol from 23 per cent to nine per cent until December 31, 2020, as a direct support for pubs. They said that the VAT reduction would contribute directly to overheads for businesses and is intended to benefit the pubs rather than the consumer. The organisations said the proposed reduction is not intended as a demand stimulus, but as a business support