The chair of the Kerry Vintners' Federation said 50% of pubs in the county offer food, and were depending on a reduction of VAT on food supplies to 9% in Budget 2025.
Publicans and hoteliers have expressed their disappointment at the government's decision to keep the VAT rate unchanged.
Calls had been made from the hospitality sector to reduce the VAT rate to 9%, the rate that was introduced during the Covid-19 pandemic.
The previous 13.5% rate was reinstated last August, despite the sector’s opposition, resulting in uncertainty for restaurants, cafés, and gastropubs since the increase.
Christy Walsh, chair of the Kerry branch of the Vintners' Federation has described the decision as a devastating body blow: