Lower VAT rate of 9pc on tourism won’t be touched – Varadkar
Published 22/11/2011 | 14:11
TRANSPORT and Tourism Minister Leo Varadkar has promised that the 9pcVAT rate on tourism products will not be hiked next year.
He told the Good Food Ireland conference today that tax on hotels, restaurants and leisure services would stay the same in 2012 because it benefits local businesses.
"The Government introduced the lower VAT rate of 9pc earlier this year in the Jobs Initiative," said Minister Varadkar.
"This rate is significant because it principally benefits home-grown employers which are based in Ireland."
He said the vast majority of these businesses are Irish-owned and that their profits stay in the country.
Mr Varadkar added that the low rate had helped boost the tourism industry.
"Many operators moved quickly to pass the VAT cut on to their customers following its introduction. Even where the rate was not passed on, it still benefited the tourism industry by helping businesses to expand their operations or take on additional staff," he said.