Tax on Hospitality
Help us campaign against Government imposed price inflation in hospitality.
VAT9
Following the formation of the new Government, it was confirmed that VAT9 would be reintroduced for food purchases in pubs and other hospitality outlets.
This was positive news, with the Government having finally recognised the damage done when they hiked the VAT on food to 13.5%.
However, the Government has also said the change won't take effect until 1st January 2026.
We don't agree with this approach.
We believe any change to the VAT rate should take effect from Budget day.
Tax rises kick in immediately, so why shouldn't reductions?
That would also mean a reduced VAT rate for hospitality business in the final quarter of this year.
When the Government increased the VAT rate they also did so in September, so why can't they cut it at the same time?
If you are engaging with your public representatives, be sure to tell them this change should apply from Budget Day.
EXCISE
Ireland has the second highest rate of excise tax on alcohol in the EU.
That's more than the UK, more than Germany and more than France.
This is adding significantly to the cost of alcohol - costs that pubs and other hospitality outlets have to pass on to their customers.
To put things in perspective:
- In Ireland, a bottle of Irish whiskey (70cl) includes excise taxes of €11.92. In Spain, they only charge €2.69.
- In Ireland, every glass of wine comes with excise taxes of 80 cent. In France, their Government charges 1 cent.
- 15 EU countries don't charge ANY excise taxes on wine.
- Excise tax on a pint of beer in Ireland is 55 cent (before VAT). In Germany, the Government excise tax is 5 cent.
These are stealth taxes that everyone is paying any time they buy a drop of alcohol in this country.
We believe these rates are too high. Given the significant business pressures impacting hospitality, it is time the Government reduced excise and brought these taxes more in line with the average rates across Europe.
