A Roscommon hotelier says an increased VAT rate for hospitality would have a dire and negative impact on the industry.
Adrian Grealy's comments come as Government look set to return to a rate of 13.5 per cent following the introduction of the temporary 9% levy during covid lockdowns in 2020.
The Abbey Hotel owner believes customers will be forced to make cancellations or reduce the size of their events, leading to a fall in overall bookings.
He's renewing his plea to the Government to retain the current rate.
'It is a step in the wrong direction. I mean the receipts from hospitality are through and through shown year on year to aid the government as far as all the spending for social welfare is concerned.
It is a step backways to impose this extra 4 and a half percent is going to have a dire negative affect on our industry. That means that the costs are simply going to go up and be passed over to the customer.'