Global economic instability highlights urgency of 9% VAT rate – Clendennen

The introduction of a 9% VAT rate for businesses must happen in the upcoming October Budget to offset the risks posed by global economic instability, according to a Fine Gael Deputy.

Deputy John Clendennen said securing the reduced VAT rate for the hospitality sector is more important than ever amid the threat of US tariffs on EU imports.

“In light of the current international economic headwinds from geopolitical instability to the very real prospect of punitive trade tariffs, it is now more important than ever that we provide certainty and relief to Irish businesses,” the Offaly TD said.

“Securing a 9% VAT rate would be a vital measure to support struggling sectors and preserve jobs across the country.

“I have been actively working with my colleagues, Minister for Finance Paschal Donohoe and Minister for Enterprise, Tourism and Employment Peter Burke to ensure the 9% VAT rate is front and centre in the Government’s budgetary priorities.”

He said the measure, long advocated by Fine Gael, would provide essential breathing space for enterprises in hospitality, tourism, and other vulnerable sectors.

“This is not just about numbers on a balance sheet, it’s about protecting real businesses, real livelihoods, and communities right across Ireland that are already on a knife edge,” Deputy Clendennen continued.

“The 9% VAT rate is a targeted and effective response that will help such businesses weather the storm ahead. We have been clear in our support for this initiative, and I will continue to work with my colleagues to see it delivered.

“Introducing the 9% VAT rate would send a strong and positive signal to business owners, investors, and international partners that Ireland remains a stable, competitive, and responsive economy,” Deputy Clendennen concluded.