Dáil Éireann Debate, Thursday - 19 September 2013
56. Deputy Andrew Doyle asked the Minister for Finance his views on whether the reduction of VAT to 9% on tourism related industries could be extended to other sectors of the economy on a trial basis; his views on whether this would have a positive impact of Ireland's road to economic recovery; and if he will make a statement on the matter. [38922/13]
View answerThe 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. In line with best international practice it was introduced as a temporary measure and is due to expire at end December 2013, at which point it will revert to 13.5%. Retaining the 9% rate, or extending the rate to other goods and services would be very costly to the Exchequer and would require an increase in taxation or reduction in expenditure elsewhere.
Any proposal to maintain or extend the 9% VAT rate will be considered in the context of the Budget.
