Oireachtas Joint and Select Committees

Tuesday, 23 September 2025

Committee on Budgetary Oversight

Pre-Budget Engagement (Resumed)

2:00 am

Photo of Richard O'DonoghueRichard O'Donoghue (Limerick County, Independent Ireland Party)

I apologise. I only have a couple of minutes. With the VAT reduction, it means businesses from that sector, if they get the 9%, can absorb costs without raising the price. That means the consumer gets value for money. It stays the same. If the VAT rate does not come down, they have to charge more because of the base coming in. It is about absorbing and keeping businesses going without driving inflation in other sectors. It is about trying to find a balance. Intake is up because of the cost of the product and the VAT rate comes down so it balances out. It also allows businesses to absorb that without raising prices. It is about providing stability across a sector which is vulnerable. The end result is the consumer pays more. No matter what wage increase they get, they are fighting fires because they get no extra value for their money.

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