The Public Expenditure Minister says it would cost more than €700 million to bring the VAT rate for the hospitality sector to 9%.
Paschal Donohoe has poured cold water on hopes from the industry that there could be a reduction announced as part of the Budget.
The Restaurants Association of Ireland says hundreds of businesses have closed since it was increased to 13.5% last year.
Minister Donohoe says there are many factors to consider when preparing the Budget:
