Carol Nolan (Laois-Offaly, Independent)
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231. To ask the Minister for Finance if he will outline the projected impact which the proposed rise in excise duty of a total of 21 cents on petrol and diesel over the coming months would have on overall revenues generated in a full year; and if he will make a statement on the matter. [11089/23]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will be aware, in 2022 my predecessor provided for a reduction in the rates of excise applied to petrol and diesel. These reduced rates were due to expire on 28 February 2023 but the Government decision of 21 February 2023 provided for a further extension of these reduced rates. On 1 June 2023 a phased restoration of these rates will begin with two further restoration dates in September and October 2023.

I am advised by Revenue that the estimated additional receipts accruing in a full year from the proposed changes to Mineral Oil Tax (MOT) on petrol and diesel are outlined in the following table. These are tentative estimates and do not assume any behavioural change.

Carol Nolan (Laois-Offaly, Independent)
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232. To ask the Minister for Finance the revenue generated from VAT on the hospitality sector, both under the current 9% rate and under the previous 13.5% rate, for each year from 2007 to date; the amounts generated from hotels as a proportion of the total; and if he will make a statement on the matter. [11090/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am informed by Revenue that a breakdown of net tax receipts, including VAT, by economic sector is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-sector.aspx

The hospitality sector is approximately captured under Accommodation & Food Services in this breakdown.

I am further informed by Revenue that traders are not required to identify the VAT yield generated from the supply of specific services or specific VAT rates on their VAT returns. Therefore, it is not possible to provide an accurate estimate for the VAT yield generated from hotels specifically.

However, using a number of third-party data sources, a tentative estimate of the VAT yield for accommodation from 2007 to 2022 is presented in the table below. It is not possible in this estimate to separate out hotels from other forms of accommodation such as guesthouses. Further, there are some elements of hospitality included in the estimate, such as some meals not charged separately e.g. Breakfast. Furthermore, meals consumed in hotels will generate VAT, but it is not possible in the third-party data to distinguish this from meals consumed in other businesses such as restaurants.

The Deputy might also wish to note that the 13.5% rate of VAT applied to these services up to 1 July 2011, when the second reduced rate of VAT at 9% was introduced. This rate remained in place until 1 January 2019 when the VAT rate returned to 13.5% rate. In November 2020, the VAT rate on these services was reduced to 9% as a result of emergency measures introduced in response to the economic impact of the COVID-19 pandemic.