THE MINISTER FOR Finance has said that the Government is considering possible changes to the Tax Debt Warehousing Scheme that was introduced for businesses following the pandemic. 

The scheme was intended to help businesses experiencing cash flow problems, by allowing them to defer paying some tax liabilities until they were in a position to deal with the debt.

Speaking to RTÉ News at the World Economic Forum conference in Davos, Minister McGrath said that changes would be made to the scheme with a view to being “as flexible as we possibly can”.

The minister said there is currently €1.75 billion owed by 57,000 businesses under the scheme. This figure has decreased, at one point over €3bn was owed by 110,000 businesses.

The Minister added that businesses must engage with Revenue Commissioners, and that it is important that they put in place repayment arrangements . 

“We will seek to introduce enhanced flexibilities to make sure that these businesses can remain in operation,” he told RTÉ. 

A wave of high profile restaurants have closed recently, leading to calls on the Government to reassess the minimum wage, VAT, and the duration of repayment for businesses that have availed of the tax debt scheme. 

Last week, Cork eatery Nash 19 closed after over 30 years in business, with the loss of some 20 jobs.

The RAI has said over 280 food-led businesses have closed down in the past six months and that the industry is “facing a crisis”.

It has released what it has called a “five-point plan to save the food-led hospitality industry”.

Adrian Cummins, the CEO of the Restaurants’ Association of Ireland today welcomed the Minister’s commitment on the scheme. 

He said that the measure on its own, however, will only act as a “bandage solution” that will not ensure a “future for the food-led hospitality industry”. 

Cummins added that the RAI is calling on the Government to introduce “long-term, strategic reform to help create a more pro-small business climate around the country”. 

He said that the first step of this plan should be the reinstatement of the 9% VAT rate for food-led businesses.