The Irish drink and hospitality sector is urging the Government to deliver a VAT reduction in the July stimulus economic plan.
The call comes after the UK announced it was cutting VAT (Value Added Tax) on hospitality services from 20% to 5%. At present, there is a 13.5% VAT rate in Ireland for hotel, tourism, food and drink services.
The Restaurants Association of Ireland (RAI) has called for the immediate reduction of the tourism and hospitality VAT rate to 5%.
It also wants to see alcohol on sales included in the 5% rate. On-trade sales applies to alcohol sold in pubs, restaurants and hotel bars.