Dáil Éireann Debate, Wednesday - 7 November 2012
40. Deputy Joe McHugh asked the Minister for Finance the impact on the tourism industry in 2012 of the temporary reduction to the VAT rate that applies to tourism products; and if he will make a statement on the matter. [48909/12]
View answerThe Finance (No. 2) Act 2011 provided for a second reduced VAT rate, of 9%, on a temporary basis in respect of certain tourism-related services and goods for the period 1 July 2011 to 31 December 2013. This measure is aimed at contributing towards boosting tourism and the creation of additional jobs in that sector. Initial analysis of the impact of 9% VAT rate indicates that employment numbers in the tourism and restaurant sector have increased and prices have reduced. In this context, I provided assurance to the tourist industry that the 9% rate will continue throughout 2013, as currently legislated for.
