Hoteliers believe there is a ‘tactical plan’ in place to prevent them from getting a lower VAT rate.
It was scrapped in recent years after being cut to help the hospitality industry during covid and the cost-of-living crisis.
However, the Summer Economic Statement released this week indicated it could return in the next budget.
There have since been reports that would cost €1 billion a year, and limit the money available to cut other taxes.
Irish Hotels Federation Chief Executive Paul Gallagher says the current situation is disappointing for hospitality staff and customers:
