Dáil Éireann Debate, Thursday - 17 November 2022
48. Deputy Imelda Munster asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media her views on the prospect of the introduction of varying VAT rates for different parts of the tourism sector; if she intends to raise this with the Minister for Finance; and if she will make a statement on the matter. [56970/22]
View answerResponsibility for rates of VAT rests with the Minister for Finance and when the 9% VAT rate for tourism and hospitality was introduced it was initially planned to last 14 months, from 1 November 2020 to 31 December 2021. This was then extended for an additional 8 months to 31 August 2022 and was then further extended to 28 February 2023. The Minister for Finance, Paschal Donohoe, has stated that it is not proposed to extend the lower rate beyond this date, a decision that is predicated on foot of evidence of a strong recovery for the tourism sector over the past six months. However, given the uncertainty ahead, I am conscious that we must remain vigilant to any downturns in that recovery in the coming months.
On the prospect of the introduction of varying rates for different parts of the tourism and hospitality sectors Minister Donohoe has confirmed that it is possible to have different rates for the hospitality and accommodation sectors. However, the Minister has also pointed out that the hospitality sector accounts for 70% of the cost of the reduced VAT measure with tourism accommodation accounting for 30% and accordingly any proposal for retaining the lower rate of VAT for the hospitality sector, for instance, would have a significant cost.
