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Monaghan Cllr. welcomes VAT cut for hospitality

Jun 25, 2026 15:38
By News Northern Sound
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Monaghan Cllr. welcomes VAT cut for hospitality

"The hospitality sector is absorbing price increase, they aren't passing it on to customers."

Local Councillor, Alan Johnston has welcomed the introduction of the permanent 9% VAT rate for the hospitality sector.

The measure comes into effect on 1 July 2026 for businesses and jobs across County Monaghan.

Cllr. Johnston believes this is a practical measure that will make a real difference to the cafés, restaurants, pubs, hotels and other hospitality businesses that are at the heart of communities throughout Monaghan.

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According to the Fine Gael man, many local businesses have faced rising costs in recent years, from food inflation and higher energy bills to increased labour costs.

By restoring the 9% VAT rate on a permanent basis, the party is helping businesses remain competitive, protect jobs and continue serving our towns and villages.

Speaking to Northern Sound, Cllr. Johnston said that rising costs is "eroding profit" for businesses.

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He said: "The hospitality sector in the first half of the year is struggling a little bit.

"It is no surprise that with increasing costs, that the hospitality sector is absorbing price increase, they aren't passing it on to customers. When you absorb these price increases, it erodes any profit," Cllr. Johnston added.

 

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