Jackie Cahill (Tipperary, Fianna Fail)
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363. To ask the Minister for Finance if he will consider extending the 9% tax on hospitality to the end of September 2022 rather than the beginning of the same month (details supplied); and if he will make a statement on the matter. [31452/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government’s decision to extend the concessionary low 9% VAT rate to the hospitality sector until end August 2022 is a temporary measure that is aimed at giving an additional support to the sector where businesses can now begin to open up gradually as the necessary Covid related restrictions are gradually eased. Together with the wide range of other support measures that the Government is making available for businesses affected by the pandemic, the temporary low rate will assist the businesses over the initial stages of their recovery and help support jobs. Given the many competing demands for publicly funded support, and in the context of future uncertainty, the measure is designed as a temporary change, with a sunset clause included in the enacting legislation.

It is important to note that VAT is normally administered on a bi-monthly basis, with traders required to make returns and account for VAT 6 times per year: in respect of January/February, March/April, May/June, July/August, September/October and November/December. For ease of administration for traders, any changes to VAT rates are normally made at the end of one of these VAT periods. This has informed the Government’s approach in the present case.