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Tax Reliefs

Dáil Éireann Debate, Wednesday - 3 February 2021

Wednesday, 3 February 2021

Ceisteanna (205)

Jennifer Murnane O'Connor

Ceist:

205. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if the stay and spend scheme is to be extended past its current termination in April 2021 given the current restrictions; and if he will make a statement on the matter. [5837/21]

Amharc ar fhreagra

Freagraí scríofa

The purpose of the Stay and Spend Tax Credit scheme is to provide targeted support to businesses within the hospitality sector whose operations are likely to be most affected by continued restrictions on public health grounds. The scheme was developed at a time when there appeared to be a steady downward trend in infection rates, and there was an expectation that the re-opening of the economy could be sustained uninterrupted. Unfortunately, this has not been the case and, thus far, with the exception of some short periods, public health restrictions have had the effect of impeding the operation of the incentive as originally envisaged.

Stay and Spend is scheduled to operate until 30 April but the flexibility exists for me to extend its operation in 2021 beyond that date (to end 2021). It is too early as yet to take definitive decisions in that regard. Much will depend on how circumstances unfold in the months ahead. As I have said before, I will keep an eye on how matters develop and the role that the scheme might play and consider if any changes need to be made.

Since 1 October 2020 when the Stay and Spend scheme commenced, a total of 47,613 receipts have been uploaded to the Revenue Receipts Tracker, as at 28 January 2021. The expenditure recorded on these receipts amounts to €7,652,571 and the potential tax cost is €1,530,514, assuming all such expenditure is claimed and qualifies in full for tax relief.

Finally, it is important also to recall that Stay and Spend should not be viewed in isolation from the other measures put in place to support businesses generally and the hospitality sector in particular. The VAT change; the rates waiver; the wage support scheme and its application to new or seasonal staff; and other Government measures all play a part in helping the hospitality sector cope with the challenges it faces.

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