Holly Cairns (Cork South West, Social Democrats)
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204. To ask the Minister for Finance his views on retaining the 9% tourism VAT rate for all of 2023 to support the hospitality sector. [62978/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the 9% rate for the tourism and hospitality sectors 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. It was then extended again for another six months until 28 February 2023 at an additional estimated cost of €250m. This was done to provide further support to the tourism and hospitality sectors over the busy November/December period and into the early New Year.

No further extension to this measure is envisaged so the rate which applies to these sectors will revert to 13.5% from 1 March 2023.

The Government recognises the impacts of the current energy crisis and understands how it has contributed to a rise in the cost of doing business across the country.

That is why on Budget Day, I announced the new TBESS (Temporary Business Energy Support Scheme). This scheme is aimed at businesses whose average unit gas or electricity price has risen by over 50% compared with their average unit gas or electricity price in 2021. It will run from September 2022 to the end of February 2023. Qualifying businesses can apply to Revenue for a cash payment, representing an advance credit for energy expenses (ACEC) that are deductible for income and/or corporation tax purposes.

The ACEC will be calculated as 40% of the excess of the 2022 bill over the 2021 bill, capped at €10,000 per business per month, or up to €30,000 if the business operates from multiple locations. Overall caps at business level will also apply as set out in the EU Temporary Crisis Framework.

The Scheme opened for registration on November 26 and for claims on December 5th. It is expected that first payments will go out before Christmas.

Further information on the scheme can be found at the following link from the Revenue website - www.revenue.ie/en/starting-a-business/tbess/index.aspx.