Dublin City centre business group Dublin Town has said a VAT reduction for retail businesses should have been prioritised over reductions to other business taxes in Budget 2025.
Dublin Town, the collective voice of businesses in the city centre, represents the interests of 2,500 members.
Chief Executive Richard Guiney said the Minister for Finance has missed a glorious opportunity to support a struggling hospitality sector and stressed that a VAT reduction remains key to maintaining employment and footfall in town centres throughout the country.
“High street businesses are struggling across the country. In order to maintain local employment, and town centre vibrancy, we believe an important and obvious practical step would have been a reduction in VAT rates,” said Mr Guiney.
“Two VAT rates of 20% and 10% should apply. Dublin Town supports increases in carbon taxes to offset such VAT reductions.
“And tax warehousing needs to be extended. Businesses are closing due to the cashflow implications of meeting these debts.”
Mr Guiney said local government revenue raising remains to be addressed.
“We advocate a commission be established to address this. Rates are an obsolete and redundant form of revenue raising. We advocate the replacement of rates with online sales and land taxes.
“Dublin Town supports the concept of living over the shop and the conversion of excess office space into residential use.
“This will require State finance. The Government must move on this.
“To preserve economic progress, we urgently need to address our infrastructural deficits in transport, water, housing and energy generation.
“While Dublin Town welcomes moves to address this, it warns that it must be done in a strategic manner.
“The Dublin Airport passenger cap needs to be lifted. Expensive, but ultimately non-viable support for regional airports will not overcome challenges posed by the Dublin Airport cap.
“Dublin Town welcomes capital gains tax relief for the transfer of assets to children, but a 12 year holding period is too long.
“And it welcomes the increase to €1,500 of the small benefit exemption. Vouchers purchased under the scheme are an important support to retail and hospitality.”