The rate will reduce from 13.5% to 9% at midnight
The VAT rate charged across restaurants, catering services and hairdressers will be cut from midnight tonight.
The rate will reduce from 13.5% to 9%.
The Government says the measure supports employment in the labour intensive sectors of hospitality and hairdressing.
It follows a campaign by the Restaurants Association of Ireland and the Irish Hairdressers Association.
The Taoiseach is defending lowering the VAT rate for hospitality, despite warnings from the IMF to increase tax revenue.
Meanwhile, a new report from the IMF advises the coalition to increase revenue from income tax, VAT and property tax, to reduce Ireland’s reliance on corporation tax.
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