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'No indication' if 9% hospitality VAT rate will be retained

The meeting included representatives from the hotel, restaurant, and pub industries
The meeting included representatives from the hotel, restaurant, and pub industries

The Restaurants Association of Ireland has said there is "no indication" from government if the VAT rate of 9% for the sector will be retained.

It comes following an online meeting involving Minister for Finance Michael McGrath, Minister for Public Expenditure Paschal Donohoe and representatives of the hospitality industry.

The RAI said the ministers did listen to the concerns of the sector, with a Government source describing the meeting as a "listening exercise".

The RAI has warned that one in every five restaurants in Ireland will be at risk of closure if the VAT rate returns to 13.5%.

On Thursday, a Cabinet sub-committee meeting is expected to consider the future of the various cost-of-living supports, including the reduced VAT rate with decisions being taken by the full Cabinet the following week.

The Coalition leaders will meet this evening, ahead of tomorrow's Cabinet meeting, but VAT is not expected to be discussed.