Unions Slam Proposed €1bn Hospitality Tax Cut as “Economic Vandalism”
Public Expenditure Minister Jack Chambers and Finance Minister Paschal Donohoe launching the Summer economic Statement. photo: Collins
Trade unions have strongly urged the government to abandon a proposed €1 billion tax cut for the hospitality sector, labelling it as “economic vandalism.” The notable tax reduction, wich woudl see the Value Added Tax (VAT) rate for hospitality businesses slashed from 13.5% to 9% for a full year, has drawn sharp criticism from union leaders.
Finance Minister Paschal Donohoe confirmed the substantial cost of this proposed measure, estimating it to be between €950 million and €1 billion. This figure has become a focal point for unions, who argue that such a large allocation of public funds could be better utilized elsewhere, notably in areas that directly benefit workers and public services.
The debate highlights a growing tension between government efforts to stimulate specific economic sectors and the demands of unions for broader social and economic investment. As the Summer Economic Statement is being launched, these contrasting priorities are coming into sharp focus, with the hospitality tax cut emerging as a key point of contention.
The potential impact of this tax cut on the wider economy and public finances is a significant concern for many. Unions are advocating for a more equitable distribution of resources, emphasizing the need to support essential public services and address cost-of-living pressures faced by ordinary citizens. The coming weeks are likely to see further debate and negotiation as the government considers the feedback on its proposed economic measures.