A Donegal Hotelier says any increase in the 9 percent VAT for the hospitality sector would be disastrous for Donegal.
The Department of Finance thinks the rate needs to be raised to 13.5 per cent again but Paul Diver of the Sandhouse Hotel in Rosnowlagh says such a move would cost business and jobs.
He says that while tourism is booming in Dublin, areas like Donegal still need the lower VAT rate to compete:
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