Pearse Doherty
Ceist:241. Deputy Pearse Doherty asked the Minister for Finance the cost of maintaining the 9% VAT rate for the hospitality sector; and his plans to continue with this measure. [31261/14]
Amharc ar fhreagraTuesday, 15 July 2014
Ceisteanna (241)
Freagraí scríofa
The 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. In Budget 2014 I announced that the 9% VAT rate would be retained indefinitely at a cost of €290 million in 2014 and €350 million in a full year. The Budget change means that the 9% rate is not due to expire, but it is subject to change in the normal course of the budgetary and Finance Bill process, as with all taxes. In this context, there would be no additional cost of maintaining the 9% VAT rate in 2015 and subsequent years.