Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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315. To ask the Minister for Finance the cost to the Exchequer in 2024 of the reduced 9 percent VAT rate for hospitality; and whether an analysis has been conducted on its effect on small business survival rates in Cork and Munster. [51152/25]

Danny Healy-Rae (Kerry, Independent)
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334. To ask the Minister for Finance to provide an update on VAT rates for tourism and hospitality (details supplied); and if he will make a statement on the matter. [51955/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 315 and 334 together.

As the Deputies will be aware, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

In the Programme for Government 2025 it was pledged to support SMEs, particularly those in the retail and hospitality sectors, by examining changes to VAT, PRSI and other measures. Any changes to tax rates, including to the timing and scope of such changes, must be done by balancing their impact against their cost on the overall budgetary framework. This will be done as part of the budget process.

I am advised by Revenue that the estimated cost to the Exchequer in 2024 of reducing the rate of VAT applied to businesses in the hospitality sector to 9% would have been €735 million. This is split between €601 million for food and catering and €134 million for accommodation services.

To the best of my knowledge, no analysis has been carried out on the impact of the VAT rate on businesses in Cork and Munster.