Wednesday, 10 March 2021
Department of Finance
Value Added Tax
290. To ask the Minister for Finance if he will consider retaining the tourism VAT rate at 9% until at least 2025 to assist the recovery of the tourism sector post Covid-19; and if he will make a statement on the matter. [13125/21]
295. To ask the Minister for Finance his plans to retain the 9% tourism VAT rate until 2025; his views on the way this would assist the recovery of the hospitality and hotel industry; his views on whether such a commitment must be made without delay as tourism contracting has commenced for 2022 and 2023; and if he will make a statement on the matter. [13236/21]
I propose to take Questions Nos. 290, 295 and 305 together.
Deputies will be aware that in recognition of the unprecedented challenges facing the Hospitality and Tourism sector, I provided for a reduction in the VAT rate to supplies of certain goods and services which primarily relate to the hospitality and tourism sector in Budget 2021. The rate was reduced from 13.5% to 9% from 1 November 2020 to 31 December 2021.
These changes introduced in the context of the pandemic are kept under review by my Department. Separately, tax changes are generally taken in the context of the Budget. Deputies will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the Budgetary process, alongside a wide range of submissions from various stakeholders and lobby groups.