Dáil Éireann Debate, Thursday - 3 October 2013
16. Deputy Mary Mitchell O'Connor asked the Minister for Finance if consideration will be given to extending the 9% tourism VAT rate beyond 2013 in order to continue to boost tourism figures and create and retain jobs in the tourism sector; and if he will make a statement on the matter. [41303/13]
View answer51. Deputy Terence Flanagan asked the Minister for Finance if he will re-think his plans to increase the VAT rate from 9% to 13.5% in view of the negative effect this will have on employment in the hospitality sector; and if he will make a statement on the matter. [41482/13]
View answerI propose to take Questions Nos. 16 and 51 together.
The 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 would be very costly to the Exchequer and would require an increase in taxation or reduction in expenditure elsewhere. Any proposal to maintain the 9% VAT rate will be considered in the context of the Budget.
