The hospitality sector is to meet the Finance Minister next week to discuss the rise in the VAT rate.
It went up from 9 per cent to 13.5 per cent at midnight, for restaurants, hotels and hairdressers.
It means Ireland will now have the third highest hospitality VAT rate in Europe.
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Our reporter Jodie Curran spoke with Michael Hanly who is the manager of the Cavan Crystal Hotel about the situation and how it will impact the sector:
