Dan Wallace
Ceist:17 Mr. D. Wallace asked the Minister for Tourism and Trade the research, if any, that has been undertaken on the effects of a sales tax on tourism. [13344/96]
Ceisteanna—Questions. Oral Answers. - Sales Tax on Tourism.
No research has been undertaken by, or on behalf of, my Department on the effects of a sales tax on tourism.
The Minister is no doubt aware that sales tax has been mentioned as a possible means of funding local authorities. He will be aware also that the Irish Hotels Federation, and other groups involved in tourism, have expressed strong reservations about the proposal. If the Government consider such a proposal to fund local authorities, is the Minister in a position to highlight the concerns of those involved in the tourism industry about the detrimental effects of such a tax?
As I said, research has not been carried out in this regard. There is no proposal to introduce a national sales tax specifically on tourism products or services and the Department of Finance is not aware of any proposal to introduce such a tax. I would be in a position to make a strong case on the consequences for tourism were such a tax envisaged. The Deputy's question probably arises from the study carried out by KPMG on the funding of local authorities which was commissioned by the Minister for the Environment. When that report is published it will be dealt with by Government.
Will the Minister agree it will be difficult for him to make any submission on this proposal if no research has been undertaken on the effects of such a tax? This research would not necessarily have to be carried out here, it could be undertaken to some extent in countries where such a sales tax exists. If the fears expressed by the trade are well founded, the Minister ought to put them forward in the debate on the funding of local authorities.
The Deputy's question referred to the research, if any, that has been undertaken on the effects of a sales tax on tourism. No such research has been carried out, there is no proposal to introduce a national sales tax specifically on tourism. The Department of Finance is not aware of any such proposal.