Dáil Éireann Debate, Tuesday - 22 June 2021
215. Deputy Róisín Shortall asked the Minister for Finance the expected net effect of measures carried over for 2022 as a result of budget 2021 measures; the way in which carryover is accounted for in the budgetary stance projections; and if he will make a statement on the matter. [32930/21]
View answerThe net carryover effect into 2022 of taxation measures introduced in Budget 2021 was estimated to be in the region of €0.4 billion.The majority of this figure related to the conclusion of the reduced 9% VAT rate for the tourism sector, which was due to expire at end-2021, with some carryover impact into the following year.
As the Deputy will be aware, the Government announced in the Economic Recovery Plan that the reduced VAT rate for the tourism sector will be extended until September 2022. The estimated additional cost of this extension is €350 million. As a result, the net carryover effect of Budget 2021 taxation measures has been reduced by the same amount.
The net carryover effect into next year of Budget 2021 expenditure measures has not yet been published and will be considered as part of the estimates process.
