Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Although it is noted on the Register of Members' Interests, I wish to declare that I am a director of a music festival that benefited from the 9% VAT rate. It is a not-for-profit organisation. The reduced rate of VAT was introduced in November 2020 during the pandemic more to support the cash margins of struggling businesses than to incentivise a reduction in prices. The total cost of the measure to the end of February will be €902 million. Has the Department undertaken analysis of the economic impact in 2023 if the rate reverts back to 13.5%? It is important that if such an increase happens, we are absolutely assured that the benefits outweigh the costs to the taxpayer, the sectors concerned and employment. There are reports of price-gouging in the hotel sector, particularly in Dublin.

That also needs to be weighed against excluding the accommodation sector because obviously Dublin is not Donegal, Kerry or Galway. There are differences in different regions.

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