LOCAL business owners are fearing that their livelihoods are under “a huge threat” after it was revealed that there will be a significant difference in hospitality VAT on both sides of the border.
It was recently confirmed that Value Added Tax (VAT) in the Republic of Ireland will be at 13-per-cent for the coming year, with the same charge in the North at a much higher rate of 20-per-cent.
Local entrepreneurs, including owner of Lusty Beg Island Hotel, Michael Cadden, are wary that the difference in VAT will impact on their business and the hospitality industry.
“The competitive disadvantage is increasing,” Mr Cadden told BBC News.
“We are marketed as one island for tourism, but then having to compete on a different base price.
“We are asking for a reduced rate of VAT, whether that is parity with the Republic of Ireland, or the reduced rate we had during Covid of five-per-cent.”
It’s feared the lower VAT rate in the Republic of Ireland could see more couples in Fermanagh and the North opt to have their wedding and events in a hotel or business down south.
Fermanagh and South MLA, Diana Armstrong, pictured left, is calling for a reduction in hospitality VAT.
“The hospitality and tourism sector is a vital component in the outward-facing image of Northern Ireland. It is pivotal in demonstrating all that is good about our country
“This industry, however, over recent years has experienced significant setbacks in terms of the Covid pandemic, and the cost of living and cost of doing business crisis.”
MLA, Jemma Dolan, has also echoed the calls for a reduction in the tax rate in the North.
“I am calling on the British Government to introduce a similar rate for hospitality businesses here,” the Fermanagh and South Tyrone MLA said.
“This would be a vital help to our hotels, restaurants and pubs who have struggled in recent years with rising bills, supporting them to thrive and attract more customers.
“As the important work of strengthening our all-island economy continues, a harmonised VAT rate would represent a positive step forward and ensure a level playing field for all hospitality businesses in Ireland.”
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