Hoteliers call for scrapping of Tourism Vat for 12 months during pandemic
The Irish Hotels Federation is calling for a permanent reduction in the Tourism Vat rate.
Reacting to the Government's €6bn fund to support businesses after Covid-19, it says while welcome, the measures fall short.
At the moment about 85 per cent of hotels across the country are closed, with many people laid off or on short-time.
Irish Hotels Federation President, Elaina Fitzgerald-Kane said a number of steps are needed to help the hotels' sector:
Ms Fitzgerald-Kane said: "A big, big part for us is continuation of the wage subsidy scheme into recovery and equally VAT to be reduced, and what we are suggesting is 0% for 12 months and returning then to an increased rate thereafter.
"In some countries it has been 7%, it has previously been 9% in Ireland."
ICTU has said it will only support the Government's package to help businesses during Covid-19 if it is used to protect and create jobs.
While it says the supports announced yesterday are positive, it says it is important State aid applicants do not forget their responsibilities to workers.
More than 427,000 are having their wages subsidised by the State and 43,000 employers have already received subsidy payments.
Fergal O'Brien from business group IBEC has indicated that some firms will need yet more support to pay wages.
Mr O'Brien said: "For some companies particularly that are going to be facing a much higher cost base and lower revenue as a result of social distancing measures, Government will probably need to support those companies in very significant ways, possibly through a wage subsidy-type model."
