Taoiseach Hints at 9% VAT Phase-out

Taoiseach Leo Varadkar has given the strongest indication to date that the reduced VAT rate on hospitality, excise cuts on petrol and diesel, and tax reductions on electricity and gas will be phased out.

Speaking in Limerick, he said:

"The temporary tax cuts such as those on excise, VAT on hospitality and on electricity and gas that were put in place were temporary, and they will need to be phased out over the course of the year, and we will be setting out how that will be done. We were always very clear they were temporary and were not budgeted for and will have to be phased out."

Mr Varadkar stressed that the package of measures to help with the cost-of-living had not yet been finalised, but will be agreed by the Cabinet on Tuesday.

The hospitality industry has been lobbying to retain the reduced rate of 9% VAT, but many within Government expect it will return to its previous rate of 13.5%.

Posted: 20/02/2023 10:02