Dáil Éireann Debate, Wednesday - 3 March 2021
216. Deputy Cormac Devlin asked the Minister for Finance if he will consider, in view of the level 5 Covid-19 restrictions being in place for a significant proportion of the duration of the stay and spend scheme, reviewing and revamping the scheme to help restart the hospitality industry in the coming months; and if he will make a statement on the matter. [11829/21]
View answer230. Deputy Paul McAuliffe asked the Minister for Finance if takeaway food and drink is eligible to be claimed under the stay and spend scheme; and if he will make a statement on the matter. [12074/21]
View answer233. Deputy Christopher O'Sullivan asked the Minister for Finance if the stay and spend tax credit will be extended until the end of 2022; and if he will make a statement on the matter. [12132/21]
View answerI propose to take Questions Nos. 216, 230 and 233 together.
The purpose of the Stay and Spend Tax Credit scheme is to provide targeted support to businesses within the hospitality sector whose operations are likely to be most affected by continued restrictions on public health grounds.
The scheme was developed at a time when there appeared to be a steady downward trend in infection rates and there was an expectation that the re-opening of the economy could be sustained uninterrupted. Unfortunately, this has not been the case and, with the exception of some short periods, public health restrictions have had the effect of impeding the operation of the incentive as originally envisaged.
Decisions on next steps relating to the scheme have yet to be taken and I will continue to assess matters as circumstances evolve.
However, Stay and Spend should not be viewed in isolation from the other measures put in place to support businesses generally, including the hospitality sector.
In recognition of the unprecedented challenges facing the Hospitality and Tourism sector, the VAT rate was reduced from 13.5% to 9 % from 1 November 2020. This is a temporary measure to provide support to the sector, where many businesses remain closed for now and those that are open are operating at significantly reduced capacity, and will apply from 1 November 2020 to 31 December 2021.
The Employment Wage Subsidy Scheme (EWSS) continues to be a key component of the Government’s response to the COVID-19 crisis to support viable firms and encourage employment in the hospitality and tourism sector and beyond. I have been clear that there will be no cliff-edge to the EWSS and, as announced by Government last week, the scheme is being extended to the end of June 2021.
The Covid Restrictions Support Scheme (CRSS) is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the COVID-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with COVID-19 Plan.
Businesses may also be eligible under the Debt Warehousing Scheme to ‘park’ certain VAT and PAYE (Employer) liabilities, excess payments received under the Temporary Wage Subsidy Scheme (TWSS), outstanding balances of self-assessed Income Tax for 2019 and Preliminary Tax for 2020.
