A total of 775 Laois businesses have warehoused tax debts, accrued during Covid times, and must enter payment agreements with Revenue from May 1.
The total warehoused amounts to €12 million, according to figures published by Independent Laois-Offaly TD Carol Nolan.
It means that the average owed by Laois businesses who availed of the scheme is over €15,000.
Warehousing of tax debt assisted businesses who experienced cash-flow and trading difficulties during the Covid-19 pandemic.
Under the scheme, businesses could defer paying some eligible tax liabilities until they were in a position financially to deal with the debt.
But the time has now come to enter into an agreement with Revenue to repay the debts. As it stands businesses can have up to five years to pay back what is owed.
Deputy Nolan has called on Revenue to “show flexibility” to businesses who are due to start repayments from May 1.
“As I understand it, these businesses have until May 1 to enter into a phased payment arrangement (PPA) to pay their tax debt, which in the current climate is effectively the straw that may break their financial backs,” said Deputy Nolan.
“What we urgently need is an immediate and unequivocal guarantee from Government that the 9% (hospitality) VAT rate will be re-introduced at speed so that businesses can at least have some kind of breathing space while they try and stay afloat while absorbing massive hikes in energy and operating costs.”
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