Written answers
Thursday, 21 January 2016
Department of Finance
VAT Rate Application
Pearse Doherty (Donegal South West, Sinn Fein)
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52. To ask the Minister for Finance the date at which the 9% rate of VAT applicable to tourism lapses or if that rate is now fixed in law, barring legislative change; and if he will make a statement on the matter. [2559/16]
Michael Noonan (Limerick City, Fine Gael)
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The 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative as a temporary measure until end December 2013. The measure was designed to boost tourism and create additional jobs in that sector. In Budget 2014 I announced that the 9% VAT rate would be retained at a cost of €290 million in 2014 and €350 million in a full year. Accordingly, the 9% rate is not subject to an expiry date but is, as with all taxes, subject to consideration in the normal course of the budgetary and Finance Bill process.
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