Fine Gael has pledged to cut the VAT rate for the hospitality sector to 11 per cent, according to a new party election promise – just weeks after no change was implemented in the Budget.
Taoiseach Simon Harris set out his party’s plan for businesses at the start of a busy day of campaigning on Saturday, on the morning after formally announcing the election.
The VAT pledge comes just more than a month after the coalition Government chose not to – despite extensive lobbying from the sector.
The rate had previously been cut to 9 per cent to support such businesses during the pandemic before being restored to 13.5 per cent.
The industry had been calling for a 9 per cent rate in the Budget announced on October 1st, with an 11 per cent middle ground also floated.
However, no such cut was announced and the rate remained at 13.5 per cent – much to the disappointment of hospitality representatives.
Fine Gael is also promising a PRSI rebate for small local businesses and €4,000 grants towards energy bills for the hospitality sector.
Mr Harris said the measures to cut costs for businesses would be delivered within the first 100 days of government.
He said: “Small businesses are the backbone of the Irish economy.
“That is why Fine Gael will permanently cut the VAT rate to 11 per cent for food-based and entertainment businesses, as well as hairdressers, to give these businesses certainty.”
Mr Harris said the three-year PRSI rebate could be worth more than €33,000 for a business with more than 50 staff.
He added: “If re-elected, Fine Gael will back our businesses with an investment of over €800 million and will introduce this package within 100 days of government.”
Minister for Justice Helen McEntee also said her party would implement a retail crime strategy.
Fine Gael’s coalition partners Fianna Fáil and the Greens also hit the campaign trail on Friday, ahead of polling day on November 29th.
Opposition parties Sinn Féin, Labour and the Social Democrats were among those appealing to the public to vote for a change of government.