Dáil Éireann Debate, Tuesday - 20 October 2020
231. Deputy Ged Nash asked the Minister for Finance the status of the staycation subsidy grant; if the projected cost of the scheme has changed in view of level 3 restrictions; and if he will make a statement on the matter. [31488/20]
Amharc ar fhreagraThe Stay and Spend scheme provides tax relief by means of a tax credit at the rate of 20% on qualifying expenditure of up to €625 per person, or €1,250 for a jointly assessed couple. The tax credit is worth a maximum of €125, or €250 for a jointly assessed couple. The purpose of the scheme is to provide targeted support to businesses within the hospitality sector whose operations are likely to be most affected by continued restrictions.
The scheme is just one of a broad range of measures to support various sectors, including hospitality, at this time. For example, I announced in my Budget speech that the VAT rate applied to Tourism and Hospitality related goods and services is to be temporarily reduced from 13.5% to 9%, from 1 November 2020 to 31 December 2021, in recognition of the unprecedented challenges facing the sector.
The Stay and Spend scheme has been in operation since 1 October, and as of 16 October, 2743 business premises had registered to be Qualifying Service Providers.
Notwithstanding the Government decision and announcement yesterday to move to Level 5 restrictions, it is still too early in the lifetime of the scheme to conclude that a revision in the estimated cost of same is warranted.
