Oireachtas Joint and Select Committees
Wednesday, 29 March 2017
Select Committee on Transport, Tourism and Sport
Estimates for Public Services 2017
Vote 31 - Transport, Tourism and Sport (Revised)
3:10 pm
Shane Ross (Dublin Rathdown, Independent) | Oireachtas source
Yes, the most recent study which was commissioned by Fáilte Ireland and carried out by Deloitte found that the reduction in VAT receipts from pre-cut levels was around €120 million but due to the employment gain of 30,000, there was a complementary increase in income tax and a decrease in social welfare costs totalling €165 million. The reduced VAT rate has actually improved the perceptions of overseas visitors and has increased value for money. It is proposed to retain the 9% VAT rate so long as prices remain competitive and to aid the sector where it is required, such as in times of uncertainty, like the post-Brexit scenario.
I am committed to the abolition of the travel tax. There have been strange demands made recently that the tax be abolished forever and never be re-introduced. It is off; there is no travel tax at the moment. It is currently suspended but it has not been abolished and that is the status it will retain.
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