Some restaurants are now trimming prices after getting a VAT cut - but most aren't
Restaurants in Ireland are reacting to a government VAT cut from 13.5% to 9% by choosing whether to pass savings to customers or retain them as profit. While industry bodies suggest most businesses will keep the savings, some individual owners are lowering menu prices to reward loyal customers.
Why it matters
This highlights the tension between government fiscal policy intended to stimulate the economy and the practical business decisions of small enterprises facing high operational costs.
A NUMBER OF restaurants have said they will cut the prices on their menus as a thank you to customers after the government slashed their VAT – but the industry does not expect many to follow suit.
The article presents both the government's intent and the industry's perspective, including quotes from business owners explaining their rationale.
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