Dáil Éireann Debate, Thursday - 18 September 2014
77. Deputy Brendan Griffin asked the Minister for Finance his views on taxation policies in budget 2015 to assist job retention and creation in the pub sector; his views on ways of easing the tax burden for this heavily labour intensive wing of the alcohol sales industry; and if he will make a statement on the matter. [34948/14]
Amharc ar fhreagraIt is not the practice to comment on what measures may or may not be introduced in advance of the Budget.
Having said that, the Deputy will be aware that a number of measures were introduced to maintain and create jobs in the broader tourism sector, of which the pub trade is an important component. In July 2011, the Government introduced the 9% reduced VAT rate for tourism related services as part of the Jobs Initiative. The reduced VAT rate, due to expire on 31 December 2013, was retained as part of Budget 2014. This decision was taken in recognition of the importance of the tourism sector to the overall economy and also in recognition of the success of the initiative in helping to create many new jobs, as well as protecting existing jobs. The 9% reduced rate applies to the supply of food and drink (excluding alcohol, soft drinks and bottled water) in the course of catering, which of course benefits the pub trade.
In addition, Budget 2014 provided for the abolition of the Air Travel Tax. This measure was designed to increase the number of tourists coming to Ireland, thus benefitting the broader hospitality sector, including the pub trade.
