Dáil Éireann Debate, Tuesday - 15 May 2012
162 Deputy Jim Daly asked the Minister for Finance his views in relation to the VAT reduction given to the service industry in 2011; if he is satisfied that the reduction has been of benefit to the industry; if he intends to extend this programme at the upcoming review date; and if he will make a statement on the matter. [23809/12]
Amharc ar fhreagraThe Finance (No. 2) Act 2011 provided for a second reduced VAT rate, of 9%, on a temporary basis in respect of certain tourism-related services and goods for the period 1 July 2011 to 31 December 2013. This measure is aimed at contributing towards boosting tourism and the creation of additional jobs in that sector. Initial analysis of the effectiveness of 9% VAT rate indicates that employment numbers in the tourism and restaurant sector have increased, prices have reduced and Tourism Ireland is targeting growth in overseas visitor numbers in 2012. In this context I have decided not to make any amendment to the rate and have provided assurance to the tourist industry that the 9% rate will continue throughout 2013 as currently legislated for.
