General Industry

SIPTU Calls for Special VAT Rate to be Scrapped

By Steve Wynne-Jones
SIPTU Calls for Special VAT Rate to be Scrapped

SIPTU, the country's largest trade union, has called on the Government to abolish the special nine per cent VAT for the hospitality sector as the workers are not seeing the benefits.

Speaking at SIPTU's biennial delegate conference, Cork hotel shop steward Tim Herlihy said the reduced VAT rate costs €350 million a year, which owners reaped the rewards of. However, he said employers were refusing to set new terms for those working in the industry.

“As a result of the lack of engagement by employers, we now have an intolerable position whereby the hotel joint labour committee has been made inoperable by the employer,” said Margaret Coffey, vice president of SIPTU’s services division.

According to the Irish Times, SIPTU passed a motion calling on the Government to remove the special VAT rate if hospitality employees refused to engage with the unions. It also called for the removal of low and zero hours contracts.