The Restaurants Association of Ireland (RAI) has strongly criticised the Government's refusal to reinstate the 9% VAT rate in Budget 2025, calling the decision a “devastating blow” to a sector already in crisis.
Today’s decision will push over 1,000 more businesses into closure over the next 12 months, according to the RAI.
Since the VAT rate was increased to 13.5% in September 2023, a total of 612 restaurants, cafés, gastropubs and other food-led businesses have been forced to close permanently
In meetings with Government Ministers in recent months, the Restaurants Association of Ireland, its members and the entire hospitality industry consistently delivered two key messages: the 9% VAT rate must be reinstated and businesses are opposed to any more short-term grants being introduced as they have proven totally ineffective in the past. Both of these the government has failed to support on.
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