Taoiseach 'concerned' about costs for SME's amid demands for return of 9% VAT rate

By Rebekah O'Reilly

Taoiseach Simon Harris has spoken out over his concerns about cost bases for SME's amid demands for the return of 9% VAT rate.

The Fine Gael politician was attending the National Ploughing Championships in Laois on Thursday morning when he said he is aware of the “challenging” costs for small businesses.

In a video captured by Alan O'Reilly of Carlow Weather, the Taoiseach said “I'm extraordinarily concerned at the cost base that small and medium businesses are facing. I've heard it in every shop, and every restaurant over the last number of months, and the cost base is really, really challenging.

“VAT is one thing that the sector have put forward that would make a difference, where the government lands on this is yet to be decided, but, we definitely have to do something to help SME's with their cost base.

“Peter [Burke] is engaging bilaterally with with the finance ministers on this today and obviously I'll support him in any business package going forward.”

Speaking on the impact of rising costs on business in Offaly in August of this year, Independent TD for Laois-Offaly Carol Nolan said: “We now know that the number of restaurants, cafés and other food-led businesses forced to close their doors for good since the 50% hike in the hospitality sector’s VAT rate from 9 to 13.5% last September has reached a total of 577.

“In terms of my own constituency, it is also vitally important to recall that these losses are taking place in the context of the €23 million in liabilities that were ‘warehoused’ as part of the Tax Debt Warehousing Scheme that was introduced for businesses following the pandemic.

“In fact, as I have previously highlighted, at least 1,530 businesses in the constituency are currently impacted by these liabilities. 755 of these businesses are in Offaly, with tax debts of €11 million while in Laois there are 775 businesses with €12 million in warehoused debts."