VAT Rate Reductions

Dáil Éireann Debate, Thursday - 23 May 2013

Thursday, 23 May 2013

Questions (235)

Tom Fleming

Question:

235. Deputy Tom Fleming asked the Minister for Transport, Tourism and Sport following on from the decision to reduce the VAT rate from 13 % to 9% and the significance of this reduction to the tourism sector here and the positive implications it has had on the industry in creating and maintaining jobs, giving value for money and so on, if he will support the calls to keep the VAT rate at 9% and ensure a strong and competitive tourism industry; and if he will make a statement on the matter. [24894/13]

Written answers

Minister for Transport, Tourism and Sport

As Minister for Transport, Tourism and Sport, I am very conscious that the tourism and hospitality industry would like to see the rate continued through 2014 and beyond.

I am also conscious that the VAT reduction costs the Exchequer an estimated €350 million a year.  I am supportive of retaining a reduced rate, but that can only be justified on the basis of clear evidence of the impact of the reduction. As the Deputy is aware, taxation policy is the responsibility of my colleague, the Minister for Finance.