General Industry News

Hospitality groups express disappointment at ending of reduced VAT rate next August

www.thejournal.ie – 12.10.2021

Lobby groups representing the hospitality industry have expressed disappointment that the reduced VAT rate for the sector will end next year. The Minister for Finance Paschal Donohoe confirmed that the 9% rate will finish – as planned – at the end of August 2022.  The Irish Hotels Federation called on the Government to extend the 9% rate until after 2025 in order to safeguard overseas tourism recovery and competitiveness. Adrian Cummins of the Restaurants Association of Ireland said Budget 2022 was “disastrous” for the industry. The Licensed Vintners Association (LVA) said the budget was generally positive for the hospitality sector but warned the VAT increase coming next September will be a serious problem.

Forecasts doubled for economic growth this year

RTE – 30.09.2021

Forecasts for economic growth this year have been revised significantly upwards by the Department of Finance. When measured by GDP, the department said the economy is forecast to grow this year by 15.6%. This is a revision upwards from just over 8.8% in the Summer Economic Statement. When measured by Modified Domestic Demand, which more accurately reflects the domestic economy, growth is forecast to be 5.25% this year and 6.5% in 2022. This is around twice as fast as was previously thought.