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Dublin's Coffee And Tourism Sector Pass Vat Hikes On To Consumers

By Publications Checkout
Dublin's Coffee And Tourism Sector Pass Vat Hikes On To Consumers

The New Year has marked the beginning of a hike in Vat rates in the hospitality and tourism industry which have brought in a rise in prices, and complaints, from Dublin retailers.

According to the Irish Independent, some retailers have had little option but to pass on the increase in Vat, from 9% to 13.5%, on to consumers.

The Irish publication reports that the price of a cup of coffee at 3FE went up by 4% to €3.65, while an Americano at Insomnia went up by 10 cents.

No Time To Adjust

The tourism sector, on top of the price hike, already has Brexit to contend with later this year, which looks set to cost the Government €390 million.

The Irish Tourism Industry Confederation told the Irish Independent that the Government has given the industry no time to adjust.


City centre coffee shops have already reached “saturation point”, according to Bord Bia, and the new Vat hike leaves it at risk of a shake-out.

3FE founder Colin Harmon told the Irish Independent that when anything happens in the industry, “people tend to look at the price of a cappuccino”.

The new site said, however, that a cappuccino is now likely to be left to more affluent members of society.

© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition. 

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