asked the Minister for Finance the estimated cost of reducing the 10 per cent VAT on tourism to 5 per cent in 1986 and in one full year.
Written Answers. - VAT on Tourism.
51.
Presumably the Deputy's reference to tourism is to hotel accommodation and the short term hire of certain vehicles and boats, caravans, etc. While the objective in reducing the VAT rates on these services in recent years was to benefit tourism the services are taxable at 10 per cent in all circumstances as it is not possible to distinguish supplies to tourists from other supplies. If any further change in rate were to be made it would have to be applied on the same basis as the present treatment. The full year cost of a reduction in rate to 5 per cent on the services in question is estimated at £7 million. The cost in 1986 if implemented from 1 March would be about £4 million.