Dáil Éireann Debate, Tuesday - 2 December 2025
164. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance his Department’s plans to monitor the planned reduction in the VAT rate on hospitality; his expectations and what will he be measuring; and if he will make a statement on the matter. [67478/25]
View answerAs provided for in Budget 2026, the reduction in the VAT rate from 13.5 per cent to 9 per cent for the food and catering sectors, as well as the hairdressing sector, will commence on 1 July 2026 and will remain in effect unless amended by subsequent legislation. The decision reflects the Government’s commitment to supporting employment in sectors that are highly labour-intensive and form a key part of the domestic economy. The measure is expected to support over 150,000 jobs across the country.
My Department monitors tax measures on an ongoing basis and more generally monitors price, labour and other economic developments across the whole of the economy on an ongoing basis. This includes, as part of the annual budgetary process, setting out relevant information and analysis in Tax Strategy Group papers. This provides a basis for periodically reviewing tax policy measures, including specific VAT measures such as the 9 per cent for the food and catering and hairdressing sectors.
