Further closures and jobs losses if VAT not reduced for food-led hospitality
The RAI said it is "essential" that the Government reinstates the 9% VAT rate, which is currently at 13.5%.
The Government has pledged to reduce the rate.
In its pre-budget submission, which is being launched today, the Restaurants Association of Ireland said the coalition "must fulfil its promise to reinstate the 9% VAT rate for food-led hospitality businesses or face the consequences of further closures, job losses, and long-term damage to Ireland's tourism economy, particularly in rural towns and villages."
The RAI said such a move is "needed to safeguard" thousands of restaurants, cafés and gastropubs across the country, as it said over 200 restaurants have already closed in 2025.
It said the current 13.5% VAT rate in Ireland is "one of the highest VAT rates on food services in the EU".
"The estimated €545 million cost of restoring the 9% VAT rate should be viewed as an investment, not a loss."
The CEO of the Restaurants Association of Ireland is calling for Budget 2026 to be "a turning point".
Adrian Cummins said temporary measures are not enough.
"We need a pro-SME, pro-hospitality budget that supports survival now and enables long-term growth."
"Bringing back the 9% VAT rate, as promised by Government, is essential. Tánaiste Simon Harris called it a solemn commitment, now it's time to deliver," Mr Cummins added.
The RAI is also calling on the Government to align future increases to the National Minimum Wage with inflation.
It is also seeking a halving of the employer PRSI rate for one year "to relieve cost pressures" and urgent insurance reform to address what it describes as "unaffordable liability premiums".
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
41 minutes ago
- Irish Examiner
Housing, security and rising costs among key issues raised by Cork business group ahead of Budget 2026
Cork Business Association (CBA) President Dave O'Brien has commended what he calls a "positive momentum" in recent months, but said key challenges must be addressed in Budget 2026 to protect Cork City. Publishing its pre-Budget submission on Thursday, the group lists business costs, Garda numbers and investment in public transport as the main issues facing Cork, with the most urgent concern being the need for increased housing. "The housing crisis features as the number one priority in the CBA's recommendations," the business group said. "Despite various Government interventions, significant gaps remain in housing delivery, especially in Cork City." Among its recommendations are calls to expand the Living City Initiative by relaxing eligibility criteria, introducing a new Apartment Living Initiative to incentivise the construction of modern apartment blocks, adjusting tax treatment to make refurbishment and redevelopment projects more financially viable, and enhancing the Help-to-Buy scheme to include renovations of vacant or derelict properties. 'If the Government fails to act decisively now, re-election will be a tough ask,' the proposal said. Business costs In light on ongoing closures across the city, the CBA is urging the Government to follow through on its commitment to reduce VAT for food-related services, as well as supporting small businesses amid ongoing wage reform. Insurance costs also remain a major concern, the CBA said, urging the Government to improve market competition and underwriting capacity. The group also highlighted that businesses are struggling to meet the increasing costs of energy, asking the Government to conduct a full review into market charges associated with energy bills. Other suggestions include reducing Capital Gains Tax from 33% to 20% to align with EU averages, and refinements to the Employment and Investment Incentive Scheme (EIIS) to better support early-stage companies and mitigate investor risk. Security While commending recent initiatives such as Community Safety Wardens pilot, the group said the city needs a significant increase in Gardaí numbers. The submission also calls for a review of the current court system to explore alternatives to having guards on duty being held up in court all day, such as the use of affidavits, that could help return more Gardaí to front-line duties in the city centre. 'We're proud of what has been achieved over the past year through collaboration,' Mr O'Brien said. "But Budget 2026 presents an opportunity to take practical steps that will support small businesses, increase housing supply, and enhance public safety. "These changes will help ensure Cork's momentum is maintained. The time for incremental adjustments has passed. What we need now is bold, transformative policy intervention.'
Irish Examiner
41 minutes ago
- Irish Examiner
Ban on services from occupied territories has to 'factor in' US anti-boycott laws, says Taoiseach
The Taoiseach has warned that introducing a ban on services from the occupied territories could negatively impact multinational companies operating in Ireland due to US anti-boycott laws. Micheál Martin said the Government must 'factor in' laws passed in some US states that penalise companies who engage in boycotts, but it was open to including services in the laws if it is legally possible. 'That's an issue we have to factor in, because we don't want any companies or multinationals in Ireland inadvertently being caught up in this,' Mr Martin said. 'The objective is to create pressure on Israel to stop the war and in particular to adhere to international law and in terms of the ICJ (International Court of Justice) judgement.' At present, the Government's legislation to ban trade with the occupied territories in the Palestinian West Bank only applies to goods, not services. Asked if the Government was seeking to prioritise commercial interests over a moral argument, Mr Martin rejected the assertion. 'It's not commercial, like it's putting bread and butter on people's table,' Mr Martin said, citing the 'hundreds of thousands" of jobs from multinational companies in Ireland. 'The object of the exercise here is to put pressure on Israel, not to disadvantage Ireland unduly and that's a factor." Mr Martin said people should be aware the legislation would be 'misinterpreted' within the United States. He added there were other challenges with the legislation, including its potential impact, citing that only €690,000 worth of trade has been done with Israeli occupied territories over the last five years. 'There's no point in Ireland coming out the worse if it had no impact on Israel. That's the only point I'm making, we have to be clear-eyed in terms of the impact. People should know about the impact is what I'm saying,' Mr Martin said. 'We don't want to inadvertently catch companies and have them punished in the United States for something they're not aware of.' The Taoiseach also questioned how it would be possible to prove if services were procured from the occupied territories. 'How do you actually detect, how do you punish the offence, the practicalities around all of that. Those are real and the bill is fundamentally symbolic, it's important.' Mr Martin said there are still 'very narrow grounds' to implement the bill. Anti-BDS legislation is in place across numerous US states, including California and Florida, which can levy sanctions against companies who participate in boycotts against Israel. Gambling legislation Meanwhile, the Taoiseach said he would favour a ban on free bets by gambling companies, adding it should take place if recently passed laws allow for it. 'We don't want young people being lulled into and induced by gambling at an early age, for example, through that mechanism because addiction, once it starts it's very difficult to shed an addiction. Gambling can have catastrophic consequences on families,' Mr Martin said. His comments come after an ESRI report found that companies offering free bets led gamblers to spend more, lose more and push them into making bad decisions. 'Our findings imply that gambling offers aren't merely marketing tools, but pose a real risk of financial harm, particularly among vulnerable groups,' said Dr Diarmaid Ó Ceallaigh of the ESRI's Behavioural Research Unit. Read More No use crying over spilt stout: Taoiseach rallies after faux pas in Tokyo
Irish Times
an hour ago
- Irish Times
Qatari prime minister says there is ‘a window of opportunity' for Gaza ceasefire
The prime minister of Qatar , Sheikh Mohammed bin Abdulrahman Al Thani, has told Tánaiste Simon Harris there is now a 'window of opportunity' for a ceasefire in Gaza after months of unrelenting attacks by Israel . Mr Al Thani, also his country's minister for foreign affairs, was visiting Ireland on Wednesday to accept the 2024 Tipperary International Peace Award, in recognition of his role in negotiations for a ceasefire in Gaza between Hamas and Israel. Mr Al Thani held a private meeting with Mr Harris in Dublin to discuss the situation in the Middle East, including the ongoing situation in Gaza and the West Bank . They also discussed wider regional issues including the situation in Iran. READ MORE Both expressed concern regarding ongoing conflicts in the region, their hope that a renewed ceasefire and hostage release agreement can be reached in Gaza and that the ceasefire between Israel and Iran will be maintained. Qatar has played a role as a mediator in conflicts. [ Why is the United Nations not doing more to stop the starvation in Gaza? Opens in new window ] Speaking after the meeting, Mr Harris said: 'During our discussions, the prime minister set out what he saw as a window of opportunity for progress towards a ceasefire between Israel and Hamas. It's vital that all parties redouble their efforts to seize this opportunity for the sake of the people of Gaza. 'The humanitarian situation in Gaza is catastrophic. I thanked Qatar for its continuing work to bring about a resumption of the ceasefire agreement. 'We urgently need to see a cessation of hostilities, the release of all remaining hostages and the resumption of vitally needed humanitarian aid at scale into and throughout Gaza.'
