Pearse Doherty (Donegal, Sinn Fein)
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210. To ask the Minister for Finance if an increase in the rate of VAT for the hospitality and tourism sector from 9 to 13.5% has been included in the projections outlined in the Summer Economic Statement or whether extending the 9% rate, for the duration of 2022, would need to be included as a stand-alone measure with cost in budget 2022; and the cost of same. [42725/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware 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 the start of September 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. 

I can confirm that the cost of extending the 9% reduction in VAT to 31 August 2022 has been accounted for in the Summer Economic Statement. The estimate for the cost of extending this reduction to the end of 2022 is €130m.