Industry welcomes extension of reduced VAT rates
Minister for Finance Paschal Donohoe to extend the 9% VAT Rate for tourism and hospitality by a further six months to 28 February 2023
10 May 2022 | 0
Business representative group Ibec, has welcomed the government’s announcement of an extension of the 9% VAT rate for those operating in the ‘experience economy’. The extension will be an important factor in protecting demand for services against economic uncertainty, as well as ensuring the sector’s long-term viability.
“Today’s announcement will be a welcome relief for those companies operating in the experience economy who were brought to the brink as they complied with public health restrictions and are still today gradually emerging from Covid disruptions,” said Ibec director of membership and sectors, Sharon Higgins.
“The certainty that today’s announcement brings will enable these companies to plan a route back to viability over the coming years.
“While today’s announcement is welcome, it is important to acknowledge that it must be seen as a first step in the broader development of Ireland’s experience economy offering,” she added.
“Industry would like to see continued investment and support to promote domestic tourism, festivals, events, and wider entertainment industry and for domestic tourism product development. In addition, there ought to be an increase in funding for overseas tourism and event promotion and product development, as well as funding to support activity to attract large scale business events, conferences, and global events such as The Gathering, to Ireland.
“In addition, we need to look beyond Covid and ensure ambitious investment is directed towards supporting life-long learning in the experience economy to promote adaption, flexibility, and future proofing,” Higgins added.
The Restaurants Association of Ireland (RAI) has also welcomed the decision taken today by Minister for Finance Paschal Donohoe to extend the 9% VAT Rate for tourism and hospitality by a further six months to 28 February 2023.
“Since the Budget last October the Restaurants Association of Ireland has called for this extension as tourism and hospitality businesses, some of the worst impacted by Covid trading restrictions, continue to recover. This decision to extend the rate is welcome at a time when hospitality businesses face rising input costs and inflation,” said RAI CEO Adrian Cummins.