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Hotels body wants 6-month VAT cut

The Irish Hotels Federation has called for cuts of 5% in all national and local public sector charges and commercial rates in next month's Budget.

IHF president Matthew Ryan said it was no longer feasible for the Government to talk about competitiveness, while allowing local authorities to impose 'monopoly-type price increases' on firms.

In its pre-Budget submission, the group also called for a temporary six-month reduction in the standard VAT rate from 21.5% to 16.5%, and a 3.5-point cut in the lower rate to 10%.

The hotels body called on the Government to keep the tax burden as low as possible, and to narrow most of the gap in the public finances by cutting spending. It urged the Finance Minister to reduce public sector salaries and social welfare payments.

The IHF also wants legislation to allow for a speedy re-assessment fo commercial property values for rates purposes.