Govt infighting over ‘uncomfortable' blanket €1bn VAT slash for Irish hospitality as Budget 2026 income tax cuts wanted
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However, this move would cost €1billion with Finance Minister
This sparked concerns that there will be little to no income tax cuts for hard-pressed workers.
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The Minister of State in the Department of Justice claimed that there are many workers who will want to see income tax cuts in the budget too.
He told Limerick Live 95fm: 'If we are to have a tax package of €1.5billion... I want to see it spread as wide and as deep as possible.'
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The Fianna Fail rep push back on the full VAT rate cut for the hospitality sector comes amid reports that the tax break for businesses will be postponed until the second half of next year.
Briefings from Government sources quoted across a range of news outlets today pointed to the VAT rate not kicking in until the second half of 2026.
Cost Crisis Hitting Irish Businesses And Causing Closure Havoc
This would see the €1billion price tag of such a VAT cut lowered and would leave the Finance Minister with more cash to use for income tax cuts in the budget.
Earlier this week, Finance Minister Paschal Donohoe warned that tough decisions will have to be made in the budget as he will not be going above the €1.5billion tax package.
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He said: 'It would not be right to grow the scale of our tax package with everything that we are confronting at the moment.'
'ECONOMIC VANDALISM'
The Minister revealed that the full year cost of a VAT cut for just restaurants and cafes would be around €1billion.
This sparked a furious reaction from trade unions who feared that the Government's commitment to the hospitality sector VAT cut would come at the cost of having no income tax cuts for workers.
The Irish Congress of Trade Unions urged the Government to drop the €1billion tax cut for the hospitality sector as they claimed it was 'economic vandalism'.
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The Coalition is at odds over the proposed VAT cut for restaurants and cafes
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The Irish Sun
a minute ago
- The Irish Sun
Feared warlord's mob ‘behind Irish aid worker kidnap' as 8 & tot, 3, still missing and latest gang talks details emerge
In a statement, the Tanaiste said he asked Haiti's Foreign Minister Harvel Jean-Baptiste 'that everything is done to ensure the release of Gena and the other hostages' ASSOCIATES of notorious Haitian gang boss Jimmy 'Barbecue' Cherizier are believed to be behind the kidnapping of Irish aid worker Gena Heraty and eight others from an orphanage, it has emerged. The warlord, a former police officer, controls the Viv Ansanm gang, a group formed in September 2023 as a coalition of gangs between the two main factions operating in Haiti's capital Port-au-Prince, G-9 and G-Pep. Advertisement 5 Gena Heraty was kidnapped in Haiti Credit: Social Media Collect 5 Haitian gang boss Jimmy 'Barbecue' Cherizier's mob is believed to be behind the plot Credit:5 Simon Harris said he has been keeping in close contact with Haiti's Foreign Minister Credit: Brian Lawless/PA Wire The group, based in the Kenscoff area of the city, provides a platform for criminal groups to use violence to destabilise the Caribbean country and quash actions aimed at restoring state control. Viv Ansanm has launched coordinated attacks on critical infrastructure in Haiti, including prisons, government buildings, and the main airport in Port-au-Prince as part of a campaign that, among other things, forced the resignation of former Haitian prime minister Ariel Henry last year. Thousands of people have lost their lives in gang violence in the troubled country in recent years, which shares with the island of Hispaniola with the Dominican Republic. Tanaiste Simon Harris said he has been keeping in close contact with Haiti's Foreign Minister Harvel Jean-Baptiste in a bid to secure Gena's and the others captives' release. Advertisement RTE News reported that contact has been made with the gang involved in the kidnapping, with phone calls between the mobsters and intermediaries on the ground in Haiti. However, a lack of functioning government in the country has made communication difficult. The kidnapped group, which included a three-year-old child, were snatched during a violent raid on the Sainte-Helene orphanage in Kenscoff on Sunday. Gena, originally from Westport in Co Mayo, who is in her mid-50s, oversees the facility, which is about 10km southeast of the capital Port-au-Prince. Advertisement She is one of a family of 11, most of whom are living in Mayo. They have expressed their gratitude for all the prayers and support but do not wish to speak to the media at this time, while negotiations are ongoing. 'VERY DIFFICULT AND STRESSFUL TIME' In a statement, her sister Mary said the family had been assured by the Government and various voluntary organisations and charities that they are doing everything in their power to have her and the other captives released. Father John Kenny, the administrator of Westport parish, said Gena's family are 'very appreciative' of the support they have received since she was abducted from the orphanage. Advertisement He described it is 'very difficult and stressful time for everyone' He said: 'Well, we were shocked first of all to hear the news, and we kind of suspected it might be Gena because she has such a high profile in our community. FAMILY 'ON TENTERHOOKS' 'We do a lot of fundraising for her charity in her home parish, Cushlough and here in Westport, for the orphanage in Haiti. Everyone is expressing their concern and solidarity with the members of her family, who are very upset and naturally on tenterhooks.' He said he met her when she was home last autumn and visiting local schools. Advertisement Fr Kenny added: 'She met the young people there, the children who were fundraising for her cause. And you could see her beaming with energy and enthusiasm about the work she does, as opposed to looking for credit, just looking to help out the people in need in Haiti.' Communities around Westport and Ahagower have been holding prayer vigils for the safe return of Ms Heraty and those abducted along with her from an orphanage in Haiti. WHO IS WARLORD BEHIND KIDNAPPING? Photo byJIMMY 'Barbecue' Cherizier is considered the most powerful warlord in Haiti and is currently believed to be one of the country's most powerful political figures. In early March 2024, his gang staged the largest jailbreak in Haitian history and escalated attacks across the country, including an attempted siege of the Toussaint Louverture International Airport. Cherizier claimed responsibility for the attacks and stated that the goal was to capture key government institutions, overthrow the unelected acting prime minister Ariel Henry and become more powerful in Haiti, warning that 'if Ariel Henry doesn't step down and the international community continues to support him, they will lead us directly to a civil war which will end in genocide.' Henry announced resigned within weeks of Cherizier's threat. Haiti has lacked a fully functioning Government since then and the criminal gangs have continued to run riot. Gang violence and kidnappings are also common in other areas in and around Port-au-Prince, where the UN says armed groups control about 85 per cent of the city. In the first half of 2025, UN figures show that almost 350 people were kidnapped in Haiti. At least 3,141 people were also killed in the same period, the UN Human Rights Office said. 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Irish Daily Mirror
31 minutes ago
- Irish Daily Mirror
Could Conor McGregor really become the President of Ireland?
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RTÉ News
an hour ago
- RTÉ News
Coriander and hummus products recalled over listeria concerns
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