Darren O'Rourke (Meath East, Sinn Fein)
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14. To ask the Minister for Finance if he intends to reduce the VAT rate on hospitality; the factors considered in this regard; and if he will make a statement on the matter. [27336/25]

Peter Roche (Galway East, Fine Gael)
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18. To ask the Minister for Finance if he would report on the progress to support essential sectors including hospitality through the tax system; and if he will make a statement on the matter. [28025/25]

William Aird (Laois, Fine Gael)
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27. To ask the Minister for Finance if he will reduce the VAT rate for the hospitality sector in advance of the budget in October 2025, to support small business in the sector; and if he will make a statement on the matter. [28040/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 14, 18 and 27 together.

In making any decision in relation to VAT rates or other taxation measures, the Government must balance the costs of the measures in question against their impact and the overall budgetary framework.

The Government is very conscious of the pressures being faced by businesses in the hospitality sector which is why it provided for a 9% VAT rate from 1 November 2020 to 31 August 2023 at a cost of over €1.3 billion.

Apart from VAT measures, recent budgets contained a number of measures to support businesses facing increased costs, including the Increased Cost of Business grant in Budget 2024 and the Power Up Grant of €4,000 in Budget 2025.

In recognition of the ongoing needs of SMEs, particularly in the hospitality sector, the Programme for Government does commit to bring forward measures to support SMEs, in particular in the retail and hospitality sectors. It acknowledges the increased cost pressures on these sectors and states that this will entail changes to VAT, PRSI and other measures.

The Programme makes it clear that these measures will be implemented as part of the normal budget process. This process will consider the timing of any VAT change as well as its scope and will begin with consideration in the relevant Tax Strategy Group paper. The pre-budget process will include meetings with relevant stakeholders as well as consideration of a wide range of pre-budget submissions. Any decision in relation to further changes to the VAT rate will need to be taken within the overall Budget Framework.