Pearse Doherty
Question:308. Deputy Pearse Doherty asked the Minister for Finance if the reduced rate of VAT for hospitality and tourism from 13.5% to 9 % is included in the base in the Summer Economic Statement 2021. [39504/21]
View answerTuesday, 27 July 2021
Questions (308)
Written answers
Budget 2021 introduced a reduction in the rate of VAT for the hospitality and tourism sector from 13.5 per cent to 9 per cent. This measure was, initially, to provide support from November 2020 to end-2021. In recognition of the continuing challenges facing the sector as a result of the pandemic and the necessary public health restrictions, the Government announced in the Economic Recovery Plan that the temporary VAT rate reduction will be extended to 1 September 2022.
The original costing for this scheme included in the budgetary arithmetic in October 2020 was for a total cost of €401 million, as listed in the Budget 2021 Tax Policy Changes document. The extension of the measure as announced in the Economic Recovery Plan is estimated to cost an additional €350 million next year.
The full estimated cost of this measure was incorporated into the high level, 'top down' update to my Department's fiscal projections published in the Summer Economic Statement published earlier this month.