Kilkenny cafés, restaurants and salons to benefit from VAT cut ‘within 100 days’
The 2024 General Election campaign got into full swing today with Taoiseach and Fine Gael promising to permanently cut the VAT rate for the food-based hospitality, entertainment and hairdressing sectors to 11% if returned to power.
Despite refusing to bow to pleas for a VAT cut from the sector in last month’s Budget, Taoiseach and party leader Simon Harris said the reduction would come into effect within 100 days of taking office.
Such a move would be broadly welcomed by restaurants and cafés and other sectors across Kilkenny who are struggling to cope with soaring costs since the pandemic.
Unveiling its plan today, Fine Gael said it will also introduce a temporary three-year measure to provide a PRSI rebate for businesses with fewer than 50 staff.
Public Expenditure Minister Paschal Donohoe promised the party would create 300,000 extra jobs over the lifetime of the next government, bringing overall employment to three million.
The Restaurants Association of Ireland (RAI) welcomed the VAT reduction proposal. RAI chief executive Adrian Cummins said the party had “listened to the concerns of hospitality, specifically food-led businesses.”
He added: “It’s early days of the campaign but from a hospitality perspective what we are hearing is extremely positive and recognises our lobbying activity regarding a VAT reduction being key for stability in our industry.”
Meanwhile, Sinn Féin leader Mary Lou McDonald spent the day in Kilkenny and neighbouring counties in the south east as she made a pitch to voters that it is now time for a government without either Fianna Fáil or Fine Gael.
Speaking ahead of her visit, Ms McDonald said people have an opportunity to vote for what she described as “real choice” and “change” in this election, by voting for Sinn Féin.
