Renua Ireland leader Cllr. John Leahy has warned Finance Minister Paschal Donohoe to; ‘’tread cautiously when it comes to any restoration of the 13.5% rate of VAT’’.
The RENUA Ireland leader said;
‘’One size fits all rates of tax rarely work.
The thriving state of Ireland’s hospitality industry is evidential proof of how when it comes to enterprise and job creation there is no such thing as a bad tax cut.
When it comes to VAT on tourism and hospitality RENUA Ireland concedes that there is space to examine the necessity of retaining this cut in Dublin.
However, tourism and hospitality across large swathes of the countryside are struggling to thrive.
These nascent employers and enterprises do not need the handicap of a higher tax rate than their European competitors.
Those mandarins who would loftily dismiss the 9% rate as deadweight should visit the thousands of green shoot rural enterprises engaged in tourism and ask them and their hard-working employees for their views.
Restoring the 13.5% across the country-side would represent an attack on rural enterprise.
The government should ignore the strange alliance of ICTU and the Department of Finance who seem to believe all SME owners are millionaires and hasten carefully on this issue.
On this occasion instead of seeking brownie points from Patricia King they should look before they leap and commission a report specifically on the impact on rural enterprise and community building’’.