The Licensed Vintners Association (LVA) has said that the upcoming reduction in VAT for food should apply from budget day later this year.
Welcoming the commitment from Minister for Finance Paschal Donohoe TD that the VAT reduction would be introduced in the budget, the representative body for Dublin pubs said that the rate change should take effect as soon as the government announces the next budget.
“There seems very little reason why the government couldn’t allow the reduced VAT rate to take effect from the day after budget day," said Donall O’Keeffe, CEO of the LVA.
"Tax rises kick in immediately, why shouldn’t reductions? All things being equal they should seek to lower it from the Budget Day too."
Minister Donohoe has indicated that any such change will not take effect until January 1, 2026.
“While this is obviously positive news for those pubs and hospitality businesses who serve food, it is notable that the rest of the pub trade has also experienced the same difficult, government imposed business conditions and they will receive no relief under these proposals," said O’Keeffe.
"That is why we will be pressing the government to also reduce alcohol excise in the upcoming Budget, which remains amongst the highest levels in Europe."
