Dáil Éireann Debate, Tuesday - 5 October 2021
159. Deputy Richard Bruton asked the Minister for Finance the level of relief that has been granted to date under the stay-and-spend tax credit; and if the applicable dates for this concession will be extended. [47526/21]
View answerThe purpose of the Stay and Spend scheme was to provide targeted support to businesses within the hospitality sector whose operations are likely to have been most affected by continued restrictions on public health grounds. The scheme ended on 30 April.
Since 1 October 2020, a total of 67,982 receipts have been uploaded to the Revenue Receipts Tracker, as at 29 September 2021. The related expenditure recorded on these receipts amounts to €11,359,603, and the potential tax cost is €2,271,921, assuming all such expenditure is claimed and qualifies in full for tax relief. Subsequent to claims being made in respect of this scheme and any other relief or deduction, verification of such reliefs and deductions forms part of Revenue’s comprehensive risk assessment programme.
The scheme was developed at a time last year 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 turned out not to be the case and, with the exception of some short periods, public health restrictions had the effect of impeding the operation of the incentive as originally envisaged.
I do not have any plans to re-introduce the scheme.
However, 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 was originally to apply until 31 December 2021. However, the reduced rate was extended to 31 August 2022. The extension until the end of the 2022 summer season allows for a longer period of recovery for the sector. It should be noted that this VAT rate reduction came after the introduction of the Stay and Spend Tax Credit and reflects the fact that the latter was not intended to be the sole sector-specific support for hospitality.
