Supermacs boss Pat McDonagh says there is "danger on the horizon" for small businesses unless the 9 percent VAT rate is reintroduced.
He is refreshing calls on the Government to make the right decision and bring back that rate for the hospitality sector in the upcoming budget.
It comes as the RAI estimates that a food business with a total turnover of €1m will face increased costs of almost €100 thousand this year.
Pat McDonagh says the industry is struggling with rising costs, including increases in energy bills and the minimum wage.
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