Dáil Éireann Debate, Thursday - 21 July 2016
90. Deputy Brendan Ryan asked the Minister for Finance his views on the maintenance of the 9% VAT rate for tourism and hospitality related services in budget 2017; his plans to present a case for the retention of the 9% VAT rate to his Government colleagues prior to budget 2017; and if he will make a statement on the matter. [23439/16]
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 my Budget Day speech last year, I suggested that while the case for retaining the measure for the hotel sector in Dublin is diminishing each year with room rates rising particularly during major events, the case for retention of the measure for the rest of the country remained. The Programme for a Partnership Government, published in May, includes a commitment to retain the hugely successful 9% VAT rate on tourism related services, providing that prices remain competitive.
