Call for 9% VAT rate to remain

THE Council has agreed with a motion by Fianna Fáil Cllr Tom MacSharry calling on Finance Minister Paschal Donohoe to retain the 9 per cent VAT rate for the hospitality sector in the upcoming Budget.

Cllr MacSharry said an increase in the VAT rate “could very well close the guesthouse or small hotel.” “Now is not the time for it,” he said.

Sinn Féin Cllr Chris MacManus said it was incumbent on the hospitality sector to engage with the Labour Commission and “treat their workers in a fairer manner.”

Independent Cllr Declan Bree said a raise in the VAT would bring in an extra ¤200m to the Exchequer which “would be welcome.”

“The hotels are doing well now. The tarif per night is significantly higher than it was four years ago,” he said.

Cllr MacSharry pointed out that there were still a lot of small hotels struggling in the West who had “borrowed big to upgrade.”

The motion was agreed .