Anti-drink campaigners were quick out of the blocks this week to denounce tax cut campaigns by parts of the hospitality industry. Alcohol Action Ireland, an advocacy group, described calls by publicans and restaurateurs for alcohol VAT cuts to weather the crisis as “irresponsible”. It is the intention of publicans and restaurateurs to pocket any VAT reduction to repair their battered margins, while keeping prices for consumers the same. This is what happened in 2011 when the incoming Fine Gael-led administration cut tourism VAT to 9 per cent. It was a highly targeted indirect bailout of the sector, adding 4.5 percentage points straight to most operators’ bottom lines.

Source: The Irish Times July 04, 2020 05:03 UTC