Reduce VAT on On-Trade Alcohol

The LVA, VFI and Drinks Ireland is calling for a temporary reduction in the hospitality VAT rate; and extending it to apply to alcohol sales in the on-trade (pubs, restaurants and hotel bars), until 31 December 2020 as part of the July stimulus package promised by Government. The rate is currently 23% which is extremely high by EU standards.
 
A reduction in the VAT rate on alcohol (which is currently 23%) is being sought to safeguard 22,500 jobs, dominated by large numbers of young workers, as pubs are on track for a 50% decline in business for the remainder of 2020, according to a report authored by DCU Economist Anthony Foley published this week.
 
The report found that on-trade pub alcohol sales will decline by 50% or more for the second half of 2020 and this figure was the most optimistic market expectation.
 
The policy ask is part of the ‘Protect our Pubs’ campaign by LVA, VFI and Drinks Ireland which seeks to highlight the important social and cultural role that the drinks and hospitality industry play in our communities and to demonstrate the loss that would be felt should some pubs not reopen due to Covid-19.