The proposed VAT reduction by Fine Gael, a Government Party, is a gesture that is too late for our small family business across the country.
“Last Wednesday the Government had the opportunity to support an amendment to the Finance Bill to reduce VAT from 13.5% to 9% for the retail and hospitality sector. The amendment was sponsored by me and the members of the Regional Group of TDs. However, the Government refused to debate the amendment and guillotined the debate and voted through the Bill to keep the VAT rate at 13.50%.
It is very curious that a few days later, Fine Gael announce that they will reduce the VAT rate if they are back in Government.
I do not believe that anyone should be playing politics with small businesses who are under so much pressure financially and are devasted that the Government have not reduced the VAT rate in the budget.
On a separate note, I have raised the issue of businesses being excluded from the new €4,000 Power Up grant for commercially rated business, including those who did not avail of the previous grant Cost of Business Scheme (ICOB). This rule was not evident from the initial announcement and many small businesses are now excluded.
The Taoiseach admitted that the scheme must be reviewed. I requested that the deadline for the application be extended and that all rate paying small business in the retail and the hospitality sector be allowed to avail of the grant without any exclusions.
I fully support small family businesses, as they are the backbone of our economy, and they need genuine support to get through this very difficult period for doing business”.