Calls to reintroduce 9% VAT rate

Local representatives have called on Tipperary Co Council to support the reintroduction of the 9% VAT rate for food-related businesses.

A notice of motion on the matter came before the September meeting of the council, at which councillors called on the Minister for Finance to extend the 9% VAT rate – which reverted back to the 13.5% reduced rate on September 1 – to the end of 2024. Cllr Phyll Bugler said those involved in the labour-intensive food and hospitality sector had endured “two terrible years” in the wake of the pandemic and are only now getting back to where they were.

In support, Cllr John Carroll said the VAT issue affects every town and village in the county and small-scale businesses are suffering. Energy companies are leading the way with their price reductions and others should be able to follow suit, he said.

The motion was referred to the Minister for Finance for comment.