Kilkenny Councillors call for reintroduction of 9% VAT rate for food-related businesses

Councillors Joe Malone and Mary Hilda Cavanagh brought forth a notice of motion supporting the reintroduction of the 9% VAT rate for food related businesses at the Kilkenny county council meeting on September 18.

They are also calling on the Minister for Finance to extend the 9% VAT rate until the end of 2024.

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Councillor Joe Malone called it ‘vital for the local economy’.

The types of goods and services affected by the VAT increase include supplies of certain food and beverages in restaurants, take-aways and other catering establishments.

The temporary 9% VAT rate for these supplies came into effect on November 1, 2020, in response to the challenges faced by these sectors as a result of the COVID-19 pandemic.

The VAT rate on these supplies was increased from 9% to 13.5% on September 1.

Councillor Andrew McGuinness voiced his support for this motion, highlighting the struggle that small food-related businesses went through during the coronavirus pandemic and its aftermath.

He said that he hopes the councillors will be able to encourage the minister to ‘afford them the opportunity to get back on their feet’. 

Councillor Pat Fitzpatrick also supported the motion and believes it is important for small businesses to retain this tax.

“They are really finding it difficult at the moment,” he said.