Sometimes the most revealing thing about a government policy is not what has changed, but the explanation for it. That is certainly true of the restored 9 per cent Vat rate for hospitality and food businesses, which is now in effect. For more than a decade, reduced Vat has been one of the most contested tax measures in Irish economic policy. It has survived successive governments, repeated reviews, and sustained scepticism from economists. When the reduced rate was first introduced in 2011, Ireland was emerging from a financial crisis. The argument was straightforward. Lower Vat would lead to lower prices.…

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