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Continuation of reduced VAT rate is a positive boost for hospitality sector coming – Conway

10th May 2022 - Senator Martin Conway

The decision by Government to extend the 9% VAT rate for the hospitality sector is a positive boost for businesses coming into the summer season, according to Fine Gael Senator Martin Conway.

Senator Martin Conway, who represents Clare, also called on Government to examine the possibility of making the 9% VAT rate permanent to help the tourism and hospitality sector, particularly after the challenges brought by the pandemic.

Senator Conway said: “The decision by Cabinet today will help businesses in the hospitality sector which have started to recover following two years of upheaval caused by Covid, and now against the backdrop of a devastating war in Europe.

“I know that my colleague, Finance Minister Paschal Donohoe, is committed to supporting businesses and to growing our economy, and I thank him for the measure he announced today.

“Some tourism and hospitality businesses are encountering massive challenges with staff shortages as they try to prepare ahead for the busy summer period and retrain new staff to replace those who might have left over the last two years.

“My own county is one which is heavily dependent on tourism and the benefits it brings to the local economy in terms of job creation and revenue.

“Government did all it could during to help businesses in the last two years with measures such as the Employment Wage Subsidy Scheme, the Covid Restrictions Support Scheme and sector-specific measures for tourism such as business continuity grants, in addition to the  lower VAT rate.

“I appreciate this is a costly measure and is additional to the other spending requirements we must fulfil. But I would ask the Government to consider the possibility of making the 9% VAT rate permanent to ensure we have a thriving industry going forward.”


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