Oireachtas Joint and Select Committees

Wednesday, 29 March 2023

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2023: Committee Stage

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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It relates to the impact on the sector. We would be of the view that if the 13.5% rate is not going to impact tourism-related jobs, then 13.5% is the rate that we believe is appropriate. The Minister made the point that if we reduce something, we will never put it back up. That is not the case. There are countless examples of that. One has to be able to intervene with a lower rate of VAT at a certain point and one needs the ability to put it back up. There will be a broader discussion because a debate has been opened on this. That was an intervention to support a sector at a particular point. There is now a broader discussion on the comparison of the 9% or 13.5% VAT rate with our competitors. With the exception of Britain, we are at the higher end. A discussion probably needs to take place before budget time to be clear about whether 13.5% or 9% is the right rate for the tourism sector. I am not sure myself. It is a costly measure. Therefore, I would not advocate it. A strong argument has been made for the long term regarding whether we are out of kilter with some of our competitors. Britain is an outlier in all of that, since it has a higher rate than even us. I am not sure what the Minister's view on that is.