Written answers

Tuesday, 21 June 2016

Department of Finance

VAT Rate Application

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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113. To ask the Minister for Finance to ensure that the 9% value added tax rate is retained for the hospitality sector to safeguard tourism; and if he will make a statement on the matter. [16718/16]

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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116. To ask the Minister for Finance further to the statement in the document, Minister's Brief 2016, about the reduced value added tax rate for the hospitality sector, the general recovery of the economy and increasing prices in the sector raises questions about its future, his plans in this regard; and if he will make a statement on the matter. [16729/16]

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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126. To ask the Minister for Finance his plans to raise the rate of value added tax for the tourism sector. [16830/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 113, 116 and 126 together.

The 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. In my Budget Day speech last year, I suggested that while the case for retaining the measure for the hotel sector in Dublin is diminishing each year with room rates rising particularly during major events, the case for retention of the measure for the rest of the country remained. The Programme for a Partnership Government published in May, includes a commitment to retain the hugely successful 9% VAT rate on tourism related services, providing that prices remain competitive.

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