The retention of the 9% VAT rate for the hospitality and tourism sector is a much-needed counter inflationary measure, a Fine Gael TD has said.
Deputy Brendan Griffin, Fine Gael Dáil Whip and former Tourism Minister, said the announcement today is “a crucial intervention.”
Cabinet met this morning and agreed to extend the 9% VAT rate for the sector until next year. It had been due to expire in August.
“We all know what happened over the last two years with the worldwide pandemic. Businesses closed and international tourism for 2020 and 2021 was practically non-existent. The hospitality and tourism sector suffered immensely,” Deputy Griffin said.
“All pandemic support measures such as Emergency Wage Subsidy Scheme (EWSS) ended as the country recovers.
“Now businesses and consumers all along the Wild Atlantic Way and across Kerry have to contend with ever increasing inflation and escalating energy costs – a worldwide issue not just an Irish problem.
“Times are tough and I am glad to see Government is responding to their needs with the retention of the 9% rate. It is a crucial intervention.
“This will help maintain and secure future employment for many while ensuring hospitality and tourism businesses have sustainable futures,” Deputy Griffin said.
“Crucially for the shoulder months beyond September 1st, this is vitally important for businesses to remain competitive for domestic and international tourists.
“I’m glad to see Government has responded to my calls and the industry’s representations on this issue. An early decision to provide certainty to all stakeholders involved is a good development,” he added.