Two-tier VAT needed to keep Mayo businesses afloat

SMALL hospitality businesses across County Mayo are struggling and need immediate support, says Aontú Councillor Paul Lawless.

“Small cafés and restaurants across the country are closing at an alarming rate,” Councillor Lawless stated. “Over 700 have shut down nationally, and here in Mayo alone, we've seen three closures in just the past month.

“This is not only heartbreaking for the owners and workers, but it’s also a significant loss for the community.

“Rural cafés and small restaurants serve as social hubs, providing essential gathering spaces at a time when loneliness and isolation are growing concerns.”

Councillor Lawless pointed to rising operating costs as a key factor in these closures, while also criticising the government’s inaction.

“The cost of doing business has skyrocketed, and the government is simply turning a blind eye,” he commented.

He proposed a solution for small rural hospitality businesses: “We should be making a distinction between small rural hospitality outlets with lower turnover and larger, high-footfall businesses in urban areas. For instance, a small café in Ballyhaunis with minimal foot traffic should not be subject to the same VAT rate as large hospitality businesses in Dublin. I believe a reduced VAT rate of 9% would offer much-needed relief.”

Councillor Lawless emphasised that keeping these businesses open is crucial for local economies. “Surely it’s better for these businesses to stay open, pay rates, and provide employment, rather than closing down.”

And he stressed the importance of supporting indigenous businesses. “We need to protect our small, local enterprises. Offering them a break on VAT would be a positive and productive step.

“The government can grasp the need to incentivise large mega corporations but don’t seem to understand that rural and regional towns need this too.”