asked the Minister for Finance if he is aware that the high rates of VAT have seriously affected the competitiveness of tourist-related business in County Donegal; and if he proposes to take steps to alleviate the situation.
Written Answers. - VAT on Tourist Services.
409.
I am aware of the important contributions made by the tourist industry to the economy generally and particularly in areas such as County Donegal. The Government, for this reason, reduced the rate of VAT on hotel etc. accommodation to 18 per cent from 1 May 1983 and extended this rate to the short-term hire of cars, boats, caravans and tents from March 1984. The appropriate VAT rate for these tourist services is under further examination in the context of the general review of the VAT rates structure which is currently being carried out.