Question to the Minister for Transport, Tourism and Sport (Dr Leo Varadkar, TD)
To ask the Minister for Transport, Tourism and Sport his views on the continuation of the 9% VAT rate for the tourism industry; and if he will make a statement on the matter. – Jerry Buttimer.
For WRITTEN answer on Thursday, 7th November, 2013.
I strongly supported the continuation of the 9% VAT rate on the basis that the initiative had proved to be a major success, improving the competitiveness of the tourism industry, helping to create thousands of new jobs and contributing to the growth in overseas visitors and revenue.
The continuation of the reduced rate is recognition by the Government of the importance of the tourism industry to the economy. Together with other Budget initiatives such as the reduction in the travel tax to zero, the raising of the VAT threshold for small businesses, the capital investment in the Wild Atlantic Way and continuing measures such as the diesel rebate for coach operators, it will build on the success of the Gathering and support the increased number of jobs already in place in the sector and assist in the creation of new jobs.
I thank my colleague Minister for Finance for maintaining the rate and urge tourism businesses to fully utilise the reduced rate while it remains in place to maintain value for money and support growth and job creation.