Written answers

Thursday, 19 September 2013

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context | Oireachtas source

62. To ask the Minister for Finance the steps he will take to ensure that the VAT and PRSI initiative, which were launched in 2011 are retained on a permanent basis for a minimum of five years as these are extremely important in the context of economic stimulation of the hotel and tourism sectors whereby these measures allow the hotel sector to respond with increased offers of employment in the wider tourism industry; if he will ensure that these important pro tourism measures are retained in the forthcoming Budgets; and if he will make a statement on the matter. [39042/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The 9% reduced VAT rate for tourism related services and the halving of the Lower Rate of Class A Employer PRSI from 8.5% to 4.25% were both introduced in July 2011 as part of the Government Jobs Initiative. These measures were introduced as temporary measures and are due to revert to their original levels at end December 2013. The tourism sector and the numbers employed in the sector have benefitted from these measures. However, the retention of these lower rates beyond 2013 is very difficult as it would be very costly to the Exchequer and would require an equivalent increase in taxation or reduction in expenditure elsewhere.

The Government will have to consider all of these factors in determining whether any extension of the measures is possible in the forthcoming budget.

Comments

No comments

Log in or join to post a public comment.