Written answers

Tuesday, 2 December 2025

Department of Enterprise, Trade and Employment

Tax Code

Photo of Barry WardBarry Ward (Dún Laoghaire, Fine Gael)
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197. To ask the Minister for Enterprise, Trade and Employment the engagement he has had with an association (details supplied) that seeks to encourage businesses to pass on the planned VAT rate reduction to customers; and if he will make a statement on the matter. [67969/25]

Photo of Barry WardBarry Ward (Dún Laoghaire, Fine Gael)
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198. To ask the Minister for Enterprise, Trade and Employment the engagement he has had with an association (details supplied) that seeks to encourage businesses to pass on the planned VAT rate reduction to customers; and if he will make a statement on the matter. [67970/25]

Photo of Barry WardBarry Ward (Dún Laoghaire, Fine Gael)
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199. To ask the Minister for Enterprise, Trade and Employment the engagement he has had with an association (details supplied) that seeks to encourage businesses to pass on the planned VAT rate reduction to customers; and if he will make a statement on the matter. [67971/25]

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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I propose to take Questions Nos. 197, 198 and 199 together.

My officials and I regularly engage with a range of stakeholder bodies in preparation for the annual budgetary process. This includes in-person meetings at both an official level and a ministerial level to identify issues of concern for a wide range of stakeholders. Further to this, stakeholders can engage with the Department through written communication. These engagements are considered in preparation for the Department’s engagement with the Department of Finance for the Budget. My Department prepares a written Pre-Budget Submission to the Department of Finance which identify the views of the Department on tax policy.

The Deputy has listed three separate organisations, and I can confirm that there has been engagement between these organisations and my Department regarding the matter of the Hospitality VAT rate in advance of Budget 2026. This communication has taken place either in the form of written communication received by my Department from these organisations, or a personal meeting in some capacity, including as part of engagements with a wider range of stakeholders, or both.

With regards to the specific matter of passing on the planned VAT rate reduction to customers, I think it is first and foremost important to highlight that the change in Budget 2026 was about ensuring viability in these specific sectors. Budget 2026 saw a reduction in the VAT rate applied to food and catering services and hairdressers from 13.5% to 9%, which will be introduced from 1 July 2025.

It is up to each individual business the price they charge and this will be based on factors related to profitability and growth. I am keen to ensure that the viability of the sector is enhanced and that employment in the sector is enhanced also. I would note that while it may be difficult to have viability and affordability together, it remains important that businesses provide value for their customers.

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