There was a call by the Rural TDs in the Dail yesterday for the VAT rate to be lowered to 9 per cent for hospitality and tourism businesses outside of Dublin.

The rate at present is 13.5 percent.

It was one element of a Dail motion from the Rural Independent group, proposing more supports for the struggling sector.

The government stated that it was not opposed to the motion, but argued that all tax measures are subject to Budgetary consideration and EU regulations.

Independent Sligo-Leitrim TD Marian Harkin believes that’s an excuse, as she says there is already an EU Reduced VAT Rate Directive in place for a number of countries for businesses in peripheral/ rural regions.

Deputy Harkin explained to Midwest News Editor Teresa O’Malley why a VAT reduction is necessary for businesses in the hospitality and tourism sectors in this region...



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