Senator Micheál Carrigy, Minister of State for the Office of Public Works, Kevin ‘Boxer’ Moran TD and Cllr Gerry Warnock at the launch of new Ireland's Hidden Heartlands brand
Minister of State, Kevin ‘Boxer’ Moran believes the next budget should reduce the vat rate for the tourism and hospitality sector to 9% as it was during the last recession.
Minister Moran confirmed that he will be contacting Finance Minister, Paschal Donohoe in the coming days asking that any new supports to kick-start the tourism sector must include a review of the VAT rate.
“I am calling for a reduction of the VAT rate from 13.5% back to the special 9% rate which was introduced in 2011 to help the hospitality sector at a time when the country was in deep recession.”
“The 9 per cent rate had been introduced as a temporary measure in 2011 during the economic crash and I believe that it is now necessary again to reduce this rate as a special concession,” said Minister Moran.
“The tourist sector will be one of the last remaining sectors of our economy that will recover fully and it needs all the help it can get. The special rate of 9 per cent had been introduced to create jobs and on condition that prices remain competitive and I believe those conditions unfortunately exist once more.”
“We cannot also forget the fact, that in addition to a post-Covid-19 recovery, the tourism sector will also be trading under much more difficult conditions in 2021 with the potential of a hard Brexit a mere matter of months away,” said Minister Moran.
The previous special 9% vat rate also applied to cinemas, theatres, certain musical performances, museums, and art gallery exhibitions. “Given that there will be little or no overseas tourism for the foreseeable future, it is important that a boast be given to the local economy and to encourage people to spend their money locally once the lockdown restrictions are finished.”
“The focus will be very much on the domestic tourism market and therefore it makes sense to introduce a measure that will be have a positive effect,” said Minister Moran.