The Public Expenditure Minister says it would cost more than 700 million euro to bring the VAT rate for the hospitality sector to 9%.
Paschal Donohoe has poured cold water on hopes from the industry that there could be a reduction announced as part of the Budget.

The Restaurants Association of Ireland says hundreds of businesses have closed since it was increased to 13.5 percent last year.

Minister Donohoe says there are many factors to consider when preparing the Budget.