New higher VAT rate is 'another nail in coffin' for Longford businesses
A decision not to extend the reduced nine per cent VAT rate for businesses is “another nail in the coffin” for Longford’s nighttime economy, it has been claimed.
The temporary 9 per cent VAT rate for tourism, hospitality and some other services - including hairdressing - expired at the end of August having been extended for the final time by the Government in February.
Fianna Fáil Cllr Uruemu Adejinmi sought backing at a meeting of Longford County Council last week for the rate to be to extended to the end of 2024 to help keep businesses in the sector open.
She said this was part of a concerted effort to prevent the closure of low margin restaurants, cafes and food led pubs in County Longford and further afield.
Fellow Fianna Fáil Cllr Martin Monaghan said the move to a higher 13.5 per cent rate would have a “detrimental effect” on Longford’s local economy as a result.
“I think we are banging on a shut door at this stage,” he said.
“We are trying to get our night time economy up and running this is just another nail in the coffin for them.”