Government told there is no longer justification for 9% VAT rate for hospitality

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Government told there is no longer justification for 9% VAT rate for hospitality
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Initial conversations on the extension of cost-of-living supports and further payments to take place between the Coalition leaders

Extending the rate to the end of the year would cost €400 million, something one source said on Sunday could “be used on a whole lot of areas”. Nonetheless no final decisions have been made ahead of talks this week.

Taoiseach Leo Varadkar indicated on Sunday that welfare recipients and pensioners will be in line for a spring bonus but that there will be a “universal” element as well. Senior sources cautioned at the weekend that the package of once-off measures would not come near the level announced in the budget. With pressure on to extend expiring tax breaks, extend business supports for energy costs, and introduce a package of both targeted and universal measures, choices will have to be made, they believe.

It is expected that there will be an argument to phase out reduced excise rates on motor fuels rather than allow them to expire – with the Green Party against their outright retention.

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