IHF criticises commercial rates system

The Irish Hotels Federation (IHF) has criticised local authority rates imposed on hotels by describing the system as "antiquated…

The Irish Hotels Federation (IHF) has criticised local authority rates imposed on hotels by describing the system as "antiquated, anti-business and anti-competitive".

Speaking at the the organisation's annual conference, IHF president Annette Devine said hotels were effectively subsiding local authority services, accusing the local authorities of levying taxes on businesses without regard to premises size, level of turnover or overheads.

"This is completely out of touch with the reality of business today. Thanks to technology and greater efficiencies, many businesses and professions generating substantial turnovers operate out of significantly smaller premises.

"Commercial rates continue to be imposed with no reference to income yields or other associated overheads. The reality is that the hotel sector is disproportionately subsidising local authorities and their services," she said.

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Ms Devine called on the Government to review the commercial rates system.

Tourism contributes more than €5.9 billion annually to the economy, of which €2.7 billion goes to the Exchequer.