As the Deputy will be aware, Budget 2019 increased the VAT rate from 9% to 13.5% with effect from 1 January 2019 for the majority of tourism goods and services. This was on the basis of economic analysis which indicated these goods and services were driven by income growth more than price.
However, I decided to retain newspapers at the 9% VAT rate in order to assist national and regional newspapers to remain competitive and meet the challenges of the modern media landscape. I also decided to apply the 9% VAT rate to newspapers, periodicals and books supplied electronically, including digital subscriptions, with effect from 1 January 2019. Previous to this change, electronically supplied newspapers and books were charged to VAT at the 23% standard rate. However, changes at EU level meant it was possible to align the VAT rates for digital and printed publications and apply reduced VAT rates to e-publications.
I also decided to retain the 9% rate for sports facilities to encourage healthy activity.
An estimate of the revenue that would be generated from increasing the VAT rate from 9% to 13.5% on these goods and services is in the region of €40m in a full year.