The Justice Minister insists the increase in VAT in the hospitality sector will not ‘see the sky falling in’.
Just after midnight, the Dail approved the measure announced in the budget yesterday.
The rate will increase from 9 to 13.5 per cent on January 1st.
A number of TD’s argued strongly against the move ahead of the vote.
Minister Charlie Flanagan told them, the impact of a rate increase had been independently assessed:
Deputy Pat the Cope Gallagher has described the move to increase the VAT rate as a serious error.
Deputy Gallagher believes that the VAT hike is especially difficult to understand in the context of the ever increasing threats of Brexit and an ever competitive tourism market.
Deputy Gallagher fears that the increase will have particular grave consequences for the industry in Donegal:
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