Dáil Éireann Debate, Tuesday - 12 July 2022
316. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of the reduced rate of VAT for the hospitality and tourism sectors from 1 January 2023 to 28 February 2023; and if this revenue is factored into the base for the purposes of Budget 2023. [37243/22]
View answerI am informed by Revenue that traders are not required to identify the VAT yield generated from the supply of specific services on their VAT returns. Therefore, it is not possible to provide an accurate costing for the potential measures outlined.
However, a tentative estimate using the most currently available third-party data would be in the region of €88m.
In-year policy measures do not form part of the Budget package for next year. The carryover cost of the reduced rate of VAT for the hospitality sector in the first months of 2023 will be accounted for in my Department’s fiscal projections but will not impact on the overall Budget package.
