‘9% VAT rate on Businesses must be retained’- Smyth TD

Lower rate 9 per cent VAT will end from March 1, reverting to the 13.5 per cent rate.

Cavan Monaghan TD Niamh Smyth stands firmly behind the retention of the 9% VAT rate on small businesses as increased costs in heating and lighting continue to bite.

As Chair of the Oireachtas Tourism committee she has listened to the needs and requirements of small businesses through their representatives and numerous emails.

The lower rate 9 per cent VAT was introduced to support the tourism and hospitality sectors during the Covid pandemic. It will end from March 1, reverting to the 13.5 per cent rate.

With the new cost of living support package pending Deputy Smyth is adamant that an increase in the VAT rate would kill off many struggling in business.

Addressing their fears, Deputy Smyth stated: “The thousands of small businesses in the café, restaurant, pub sector and also the Hairdressing sector cannot afford a VAT rise during this cost-of-living crisis. All of these businesses are labour intensive creating much needed local employment and keeping some vibrancy on our streets. Many of them are on life support and they require an injection of hope rather than another nail in the coffin.”

She continued: “The dwindling footfall within rural towns has already turned off the light in many premises with no new enterprises replacing them. Decimated main streets are not good for communities thus the protection and safeguarding of small businesses must be the focus of Government policy.”

Deputy Smyth implored Ministers McGrath and Donohoe and her Cabinet colleagues to keep the 9% VAT intact until the stubborn resistance of inflation is broken and a new economic era of growth is established.

She concluded: “Business doors on main streets must be supported through this crisis for the future seeds of regeneration and hope to be nurtured and encouraged. Please don’t crack a nut with hammer.”