Budget Vat cut would be an ‘extremely significant’ cost to the taxpayer, department officials warned

Being more ‘targeted’ not permitted under EU laws

Former finance minister Paschal Donohoe was advised of the costs. Photo: Steve Humphreys

Officials warned that a cut in Vat for cafes, restaurants and fast-food chains would come at an “extremely significant” cost to the taxpayer and would create a lot of “dead weight” by supporting businesses that did not need help.

In a pre-budget submission, Department of Finance civil servants said the measure would apply to all businesses.

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