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Tax Reliefs

Dáil Éireann Debate, Thursday - 22 April 2021

Thursday, 22 April 2021

Ceisteanna (29)

Richard Boyd Barrett

Ceist:

29. Deputy Richard Boyd Barrett asked the Minister for Finance the reason the stay and spend relief is only applicable from October 2020 to April 2021 and not from July 2020 as was previously indicated; and if he will make a statement on the matter. [21042/21]

Amharc ar fhreagra

Freagraí scríofa

I refer the Deputy to the statement I made during the Dáil second stage debate of the Financial Provisions (Covid-19) (No. 2) Bill 2020 on 29 July 2020, and in particular the following extract:

"It [the Stay and Spend scheme] will run from 1 October 2020 to 30 April 2021"

 In relation to the rationale for the 1 October start date, I advised the House that:

"This will incentivise taxpayers to support registered or accredited providers of accommodation, food or both during the off-season, thus providing support to a particularly vulnerable sector that continues to be constrained by public health limitations." 

The purpose of the scheme was to support demand in the hospitality sector at a time when, notwithstanding the public health situation, demand might be normally be expected to be lower than throughout the summer months.

The scheme was legislated for 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, with the exception of some short periods, public health restrictions have had the effect of impeding the operation of the incentive as originally envisaged.    

I am conscious of the exceptional difficulties that remain to be faced by the hospitality sector and in this regard I would note that besides the Stay and Spend scheme, other measures which are of significance are in place to support businesses generally, including the hospitality sector. These include the temporary reduction in the VAT rate from 13.5% to 9% with effect from 1 November 2020, the Employment Wage Subsidy Scheme, the Covid Restrictions Support Scheme and the Debt Warehousing Scheme.

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