Brendan Griffin (Kerry, Fine Gael)
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394. To ask the Minister for Finance if he will extend the time period for which the 9% VAT rate will apply to the relevant sectors until the end of 2023 in light of the ongoing and protracted nature of the Covid-19 crisis; and if he will make a statement on the matter. [40434/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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Budget 2021 provided for a reduction in the rate of VAT from 13.5% to 9% for Hospitality and Tourism related services and goods. This was a temporary measure to provide support for 14 months from 1 November 2020 to the end 2021. The measure is being extended to 31 August 2022 in recognition of the continuing challenges facing the Hospitality and Tourism sector.

While temporary, this measure will still provide support for a further 8 months to 31 August 2022, the end of the 2022 summer season, allowing for a longer period of recovery for the sector. It exists alongside other measures and will directly support businesses and jobs.

Given the scarcity of resources available to the government when looking at potential support measures, and in the context of future uncertainty, this remains a temporary measure. My Department and Revenue will continue to monitor the impact and need of this reduction on an on-going basis along with the other support measures put in place.

Brendan Griffin (Kerry, Fine Gael)
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395. To ask the Minister for Finance if he will reconsider this Deputy’s previous proposal to eliminate capital gains tax for a two year window for sellers selling homes, sites or derelicts and currently uninhabitable properties to first-time buyers as a measure to bring more properties on to the market and give the first-time buyer a more competitive edge in that market versus investors; and if he will make a statement on the matter. [40435/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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As previously indicated to the Deputy, there are a number of existing reliefs that are available to property owners selling their home, and to first-time buyers such as the Help to Buy scheme and certain reliefs under the Capital Tax area which I outlined in my previous response.

I am very conscious of the need to bring more properties onto the market and to give first time buyers a more competitive edge in the market versus investors. In this regard, the forthcoming Housing for All Strategy will bring forward a number of proposals to help address the broader housing needs of our society. It should be noted however that, as of now, I have no plans to make any changes to the CGT rate in the way suggested by the Deputy. However, that said, all taxes and potential taxation options are of course constantly kept under review.

Finally, I wish to reiterate the importance I place on improving the position for first time buyers by pointing out that the rationale for the introduction of the recent 10% stamp duty charge on the multiple purchase of houses is to disincentivise such purchases by institutional investors with a view to levelling the playing field for first time buyers and others interested in buying a home to live in.