Telecoms Industry Ireland calls for VAT reduction in order to meet goals of National Connectivity Strategy
Telecommunications Industry Ireland (TII), the Ibec representative body for the electronic communications industry in Ireland, is urging the government to reduce the VAT rate for internet access services delivered over fibre and 5G fixed wireless acces (FWA) from 23% to 13.5% to help achieve the goals of the National Connectivity Strategy set in 2028.
In its Budget Submission 2025, TII outlined the practical measures needed from Government to ensure a competitive, sustainable future for Ireland’s telecommunications industry. The sector employs 24,000 people with an annual payroll of €1.6 billion. It has invested approximately €3.5 billion in the network over the past five years and pays €2.7 billion annually to suppliers in Ireland for goods and services.
Torlach Denihan, director of Telecommunications Industry Ireland, said: “Telecommunications is the backbone of Ireland’s digital economy, providing the significant network investments that enable our digital future. We urgently call for a reduction in the Budget in the VAT rate on internet access services delivered via fibre and 5G FWA from 23% to 13.5%. This reduction is not just a fiscal adjustment but a critical step in ensuring that the benefits of very high-capacity networks are spread as widely as possible.
“As businesses and communities increasingly rely on Internet services, especially in rural areas, this move is vital to help bridge the digital divide and to drive further investment in telecommunications infrastructure, thus retaining our competitive edge and making Ireland a leader in digital connectivity and the associated economic and social benefits. With… about 30% of the EU’s data hosted in Ireland, this progress would be impossible without advanced, competitive telecommunications.
“As industries digitise and AI adoption accelerates, data traffic will surge exponentially. For Irish businesses to capitalise on these opportunities, a thriving telecoms sector must continuously upgrade infrastructure – like fibre and masts – to support the very high-capacity networks essential for remote working, online education, and leisure activities, as well as to continue providing vital public and emergency services.”
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