Clare IBEC Rep Says Higher Hospitality VAT Rate Will Lead To Businesses Struggling To Survive

A Clare-based IBEC representative fears many low margin businesses will struggle to survive, if the Governent pushes ahead with plans to increase the VAT rate for the hospitality sector. The business group is warning that maintaining the lower 9% rate is crucial for saving 300 thousand jobs across the country, though the Government has already ruled this out, with the higher rate of 13.5% to be reinstated next week. Ibec's Executive Director of Membership and Sectors says high energy costs and inflation, and measures such as increasing the living wage and auto enrollment pensions are already placing significant pressure on businesses. Cratloe resident Sharon Higgins believes the lower VAT rate should be made permanent so that businesses can remain competitive locally.