Gym tax credit, vape levy, and VAT cuts among Budget 2026 options in new strategy papers
The papers outline that cutting the VAT rate for the hospitality sector — including pubs, restaurants, hotels, and hairdressers — would cost €867m per year. File photo
The Government has been advised that splitting the VAT rate for food and accommodation within hospitality could lead to underpayment and manipulation of the tax.
The coalition is expected to reduce hospitality VAT from 13.5% to 9% in Budget 2026, with ministers stating that this cut applies only to the food sector.
