Written answers

Tuesday, 21 June 2022

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Independent)
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158. To ask the Minister for Finance his views on the reintroduction of the 9% vat rate to the tourism industry; the affect it would have on inbound and domestic tourism; and if he will make a statement on the matter. [32761/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the 9% rate for these industries was reintroduced in Budget 2021 from 1 November 2020 to 31 December 2021 at an estimated cost of €401m. This measure was initially extended in Budget 2022 to 31 August 2022 at a further estimated cost of €251m. I have now extended this measure for a further six months. The 9% VAT rate will therefore remain for these sectors until 28 February 2023 at an additional estimated cost of €250m. No further extension to this measure is envisaged so the 13.5% rate will apply to these sectors from 1 March 2023.

This extension will cover the same goods and services as the original measure, restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, and hairdressing, as well as certain printed matter such as brochures, leaflets, programmes and catalogues.

The further extension reflects the fact that the tourism and hospitality sectors were among those most impacted by the public health restrictions put in place throughout the pandemic. Through no fault of their own, bars, hotels and restaurants had to close on multiple occasions in response to the public health crisis. This measure will provide further support to the tourism and hospitality sectors over the busy November/December period and into the early New Year.

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