Lawless suggests two-tier VAT rate system needed to keep Mayo businesses afloat

Small hospitality businesses across Mayo are struggling and need immediate support, according to Aontú Mayo county councillor, Paul Lawless.

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

Cllr Lawless's call comes in the wake of mass protest in Dublin yesterday, where hundreds of business owners and workers from the hospitality and retail sectors highlighted the huge difficulties they feel their industry is facing.

Paul Lenehan, President of the Restaurants Association of Ireland said at the protest: “Let's be clear, this isn't because of a lack of support from the consumer, or a lack of effort on our part - it's because the cost of doing business has spiralled out of control and the Government has refused to take meaningful action to address this.”

Cllr Paul Lawless wants a two-tier VAT rate system to help small businesses. 

Cllr Lawless also 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 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 percent would offer much-needed relief.”

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.”

In closing, Lawless 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.”