Vol. 535 No. 5
151 Mrs. B. Moynihan-Cronin asked the Minister for Finance if he will reduce and defer payment of VAT on accommodation and food sales from March to June 2001 to alleviate the financial strain on the tourism industry; and if he will make a statement on the matter. [13130/01]
I have no plans to make any change to the rate of VAT which applies to accommodation or food sales. In any event this could not be done without consideration of whether it would be permissible under EU VAT law, with which Irish VAT law must comply and the introduction of the necessary legislation to make any such changes.
As regards any deferment of VAT, it would be difficult to consider relieving any sector of the legal requirement to pay VAT owed to the Exchequer or agreeing any general postponement of the collection of taxes for the tourism sector. Any such reliefs would have to encompass a very large number of cases and would invariably extend to businesses unaffected by the current difficulties in the sector. Any general short-term VAT relief would create long-term difficulties for businesses which would eventually have to pay both their ongoing taxes and arrears of taxes. I understand that in so far as particular cash flow problems arise for individual businesses Revenue does as part of normal arrangements look sympathetically at payment arrangements on a case by case basis.
VAT is collected by businesses from their customers on behalf of the State which does not extend any entitlement to retain such revenues as part of the daily operations of their business.
152 Mrs. B. Moynihan-Cronin asked the Minister for Finance if he will reconsider his decision with regard to excise rebate on fuel for the coach tourism sector, due to the worrying downturn in their business following the outbreak of foot and mouth disease; and if he will make a statement on the matter. [13131/01]
I am well aware of the concerns expressed by the coach tourism sector from the numerous representations which I have received on their behalf. Meetings were also held with my officials. However, as I have stated previously, EU State aids issues arise here.
