Fianna Fáil TD for Cavan and Monaghan, Brendan Smith has welcomed the extension of the 9% Value Added Tax (VAT) rate for the tourism and hospitality industry for a further six months.
Deputy Brendan Smith commented, “This welcome extension is great news for the tourism and hospitality industry. This industry was hit particularly hard by restrictions during the Covid-19 pandemic. Many bars, restaurants and hotels had to close to help the country struggle through the once in a generation public health crisis.
“Although supported by Government intervention during the worst of the pandemic, this extension will help promote business survival and support employment in the industry, especially as we enter the busy season for these businesses.”
The Cavan and Monaghan TD added: “The extension will cover the same goods and services as the original measure, restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, and hairdressing, as well as certain printed matter such as brochures, leaflets, programmes and catalogues.”
The proposal was approved by Government at the Cabinet meeting today. The 9% VAT rate will therefore remain for these sectors until 28 February 2023.
The estimated cost of this further extension is €250m.
ENDS – 10/05/2022
Notes for Editor
- The 9% rate for these industries was reintroduced in Budget 2021 from 1 November 2020 to 31 December 2021 at an estimated cost of €401m.
- This measure was initially extended in Budget 2022 to 31 August 2022 at a further estimated cost of €251m.
- No further extension to this measure is envisaged so the 13.5% rate will apply to these sectors from 1 March 2023.