The VAT rate for hospitality and tourism will increase from 9% to 13.5% at the end of August.
The Department of Finance has confirmed Michael McGrath does not plan to give a further extension of the measure which has already cost €300 million.
The Restaurants’ Association of Ireland had appealed to TDs to decouple food and drink outlets from other parts of the tourism economy and keep the lower rate for some.
However, Ministers will allow the rate to revert to the higher level come September.
