A Kerry MEP has called for the Government to reinstate the 9% VAT rate for the hospitality sector.
Seán Kelly says the increase has placed additional strain on businesses in the industry, which are struggling with escalating costs.
The Fine Gael MEP believes given the current economic climate a return to the reduced rate will prevent further closures and job losses.
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MEP Kelly says alleviating pressures on the hospitality industry will avoid passing on costs to consumers, protect disposable incomes and maintain competitiveness.
