Bernard Durkan (Kildare North, Fine Gael)
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102. To ask the Minister for Finance the extent to which he remains satisfied that the hospitality sector continues to ensure good value to the customer arising from the 9% VAT rate; and if he will make a statement on the matter. [22390/17]

Michael Noonan (Limerick City, Fine Gael)
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As part of the Government's Job Initiative in 2011, I introduced a temporary second reduced VAT rate of 9% in respect of tourism related services, including hotel and holiday accommodation; various entertainment services; the use of sporting facilities; hairdressing services; and various printed matter. This measure was aimed at boosting tourism and the creation of additional jobs in that sector.

In Budget 2014, I decided to retain the 9% rate to support the increased number of jobs already in place and accelerate the creation of new jobs. The rate was further retained in Budget 2015 in light of the job growth in the tourism sector. 

The Programme for a Partnership Government, published in May 2016, made a commitment to work towards achieving the tourism policy goals set for 2025 through specific measures including the retention of the 9% VAT rate on tourism related services, but this itself is dependent on prices remaining competitive in the sector.

In Budget 2017, in light of Brexit, I considered it would be prudent to retain the 9% reduced VAT rate into 2017.