Restaurant closures Taoiseach defends refusal to reduce hospitality VAT rate in budget

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=f1yPjx7BLM0

The Taoiseach has insisted that reducing the VAT rate for hospitality would have led to many more small businesses demanding the same. • Hospitality and tourism groups have slammed yesterday’s budget – warning that Government’s failure to protest bars, cafés and restaurants will lead to the closure of “a huge number of businesses across the country” in the coming months. • The Vintners’ Federation of Ireland described the budget as “devastating” for the hospitality industry, while the Irish Hotels Federation warned that Government had offered “next to nothing” for the sector. • Separately, the Irish Tourism Industry Confederation warned that rural tourism businesses will be hardest hit by the failure to protect hospitality. • Well over 600 food businesses have been forced to close their doors since the hospitality VAT rate was returned to 13.5%. • Just last week, two restaurants that have operated side by side in Terenure in Dublin for many years, Damascus Gate and Dinos chipper, closed their doors. • On Newstalk Breakfast this morning, the Taoiseach Simon Harris defended the decision not to reduce the VAT rate. • “While the government wasn't in a position yesterday to do the 9% VAT rate, let's also acknowledge that [there are] lots of sectors of the economy, lots of small businesses that would have wanted changes to their VAT rate,” he said. • “So, if you pulled that thread, I’m not sure where we would have ended up overall.” • He insisted the Government did “a number of things” to help food businesses in the budget – including the expanded energy support scheme which will offer hospitality and retail businesses up to €4,000 tax-free between now and Christmas. • “We also increased the earned income tax credit for people who are self-employed – many of those people running cafes, running restaurants. • “We did increase the threshold for VAT – so people who are having less of a turnover, they won't have to pay that.” • Mr Harris said Government also “listened” to businesses by opting against moving forward with plans to expand the number of sick days available to workers to 10. • “You know what we've most importantly done for business?” he asked. • “We put more money in their customer's pockets. • “We've reduced the USC by a percentage point that will benefit all people working in our economy. • “We've increased the income threshold at which you pay the higher rate of tax and we've provided people with more disposable income as well.” • The Taoiseach said Government will “continue to keep these things under review” adding that he does believe there is a “broader conversation and I want to have it with the hospitality sector about the cost base that small and medium businesses face in this country”. • The Taoiseach also rejected claims from Social Democrats leader Holly Cairns that the government was trying to buy the election with yesterday’s budget insisting the comment was nothing but a “sound bite”. • He also refused to be drawn on when the election would be held – insisting he would not be “providing a running commentary” on the Government’s plans in the coming weeks. • • ________________________________________________________________________________________________ • 📱 Have you downloaded the Newstalk app? • Find the app in the Google Play store: • https://play.google.com/store/apps/de... • Find the app via Apple: https://apps.apple.com/ie/app/newstal... • #️⃣ SUBSCRIBE to the Newstalk social channels: • YOUTUBE | / @newstalkfm • TWITTER | twitter.com/newstalkfm • INSTAGRAM | instagram.com/newstalkfm/ • FACEBOOK | facebook.com/newstalkfm • WEBSITE | https://www.newstalk.com/ • 🎧 PODCAST - listen at your leisure: newstalk.com/podcasts • iTunes: search for Newstalk in your app! • Spotify: search for Newstalk for our latest pods and news • Or wherever you get your podcasts! • 📱GET IN TOUCH WITH NEWSTALK • WhatsApp: get in touch on 0871400106

#############################

New on site