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VAT expected to be cut to 9% for hospitality sector

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A VAT cut for the tourism industry is likely to be announced in the budget on Tuesday. Meetings are taking place this weekend to finalise the budget.

The tax reduction would benefit the hard-hit restaurant, hotel and hospitality sectors, and has been one of the key demands from the industry.

Several senior Government sources indicated that the VAT cut is now likely, with the 13.5% rate applying to the sector expected to be reduced to 9%, as was done in the last recession.

The Tourism Recovery Taskforce, which was set up to examine how the industry could recover, has also recommended the cut. Also in Tuesday's budget, there will be an increase of 15,000 retraining places in further and higher education, particularly targeted at young

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