Minister Catherine Martin wanted tourism’s 9% VAT rate kept and says decision to raise it will face ‘review’

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Minister Catherine Martin wanted tourism’s 9% VAT rate kept and says decision to raise it will face “review” via IrishTimesBiz

Minister Catherine Martin outlining provisions of Budget 2023 pertaining to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media to members of the media. Photograph: Alan Betson / The Irish TimesMinister for Tourism Catherine Martin wanted the sector’s special low 9 per cent VAT rate retained in this week’s budget and the Government’s decision not to announce an extension beyond the end of next February will face a review.

Speaking at her department’s post-budget press conference, Ms Martin said she will continue to meet lobbyists for the tourism industry who want the sector’s lower VAT rate retained, and not to revert to 13.5 per cent as planned. The Department of Finance under Minister Paschal Donohoe has long wanted the VAT stimulus for the tourism sector to be scrapped, but the measure is believed to still have some support among several other Cabinet members.

In carefully-worded comments in his budget speech on Tuesday, Mr Donohoe did not actually specify that tourism’s 9 per cent rate would conclude at the end of February, only that it would continue until then. Barely an hour after Mr Donohoe finished his speech, the Tánaiste and soon-to-be Taoiseach again, Leo Varadkar, appeared to leave the door ajar for a possible extension. He said the decision to raise the rate to 13.

 

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