Richard Curran: Paschal Donohoe's 800m Vat cut for hospitality looks like a sweetener for businesses that are doing OK

"The Government's plan to cut the rate of Vat for hospitality from 13.5pc to 9pc took quite a pounding last week with Budget Day looming. First came the Irish Fiscal Advisory Council (Ifac) which upped the ante on the issue by highlighting how much the cost of the measure could be worth to workers in tax cuts, or how many more teachers could be hired if the money went into education instead of to pubs and restaurants."

"The Government's plan to cut the rate of Vat for hospitality from 13.5pc to 9pc took quite a pounding last week with Budget Day looming. First came the Irish Fiscal Advisory Council (Ifac) which upped the ante on the issue by highlighting how much the cost of the measure could be worth to workers in tax cuts, or how many more teachers could be hired if the money went into education instead of to pubs and restaurants."

A proposed reduction of the hospitality VAT rate from 13.5pc to 9pc attracted strong criticism amid Budget Day timing. The Irish Fiscal Advisory Council quantified the fiscal cost and emphasized significant opportunity costs. The council noted that the funds could alternatively provide tax cuts for workers or finance additional teacher hires. Redirecting the money into education would increase teacher numbers rather than subsidize pubs and restaurants. The debate frames the measure as a choice between supporting the hospitality sector and allocating limited public resources to workers or core public services.

Read at Independent