Timmy Dooley (Clare, Fianna Fail)
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Question 131: To ask the Minister for Finance his policy on the reduced rate of VAT for the tourism sector; and if he will make a statement on the matter. [14079/12]

Michael Noonan (Limerick City, Fine Gael)
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The Finance (No. 2) Act 2011 provided for a second reduced VAT rate, of 9%, on a temporary basis in respect of certain tourism-related services and goods for the period 1 July 2011 to 31 December 2013. In reducing the VAT burden on activities related to the tourism industry, the introduction of the 9% VAT rate is aimed at contributing towards boosting tourism and the creation of additional jobs in that sector. With this in mind, the VAT reduction will be kept under review and evaluated before the end of 2012 in order to determine its effectiveness in aiding the industry. If it is shown that the VAT reduction has not had the desired effect in aiding the industry then the measure is open to being reformed or abolished.