Brennan calls for VAT cuts for local businesses over multinational chains

Fianna Fáil TD for Dublin Rathdown, Shay Brennan, has warned that a blanket VAT cut for the hospitality sector risks funnelling scarce taxpayer resources to highly profitable multinational chains instead of vulnerable local businesses.

“Starbucks, a global coffee chain with $36.7 billion in annual revenues, is an example of a company that would stand to benefit from the proposed cut in hospitality VAT from 13.5% to 9%,” Deputy Brennan said. “This is not a good use of €1 billion of taxpayers money.”

The proposed reduction would cost the Exchequer an estimated €1 billion annually — two-thirds of all available resources for tax cuts this year. This would mean hospitality alone receiving twice as much support as every other sector and individual taxpayer combined.

Deputy Brennan has called on the Minister for Finance to ensure any VAT reduction is targeted at indigenous small businesses that need it most.

“Our hospitality sector is hugely important, but it is also diverse. We must distinguish between small, owner-operated cafés, pubs and restaurants that are struggling, and large, profitable chains that do not require additional taxpayer support. A targeted approach would protect jobs, fairness, and leave more room for tax relief in the wider economy.”

He stressed that untargeted relief would undermine public trust by prioritising multinational chains over struggling SMEs and households facing cost-of-living pressures.

“I support measures to sustain the viability of hospitality businesses, but supports must be fair, proportionate, and directed where they will have the greatest impact.”