Michael Ring (Mayo, Fine Gael) | Oireachtas source

This question is about the VAT rate for the tourism and hospitality sector. I am very conscious that the tourism and hospitality industry would like to see the 9% rate continue throughout 2014 and beyond. I am supportive of retaining a reduced rate but I am conscious that this can only be justified on the basis of clear evidence of the impact of the reduction and in light of the overall budgetary position.

In that regard, the Minister, Deputy Varadkar, and I have been in touch with the Minister for Finance, who is responsible for taxation policy, advising him of the benefits that we believe have accrued as a result of the initiative and advising him that, in our opinion, there are very strong economic grounds for maintaining the 9% rate. Our officials have since met with the Department of Finance, as recently as last week, to point out the positive outcomes from the initiative and to make a case for the maintenance of this reduced rate. That said, I am conscious that proposals to maintain the 9% rate will have to be considered in the context of the challenges presented by the forthcoming budget.

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