Published: Thu, 10 October 2013
Sean Kelly MEP has calling on the Minister for Finance Michael Noonan to maintain the 9 per cent VAT rate for the tourism sector, ahead of the budget in the coming days.
Speaking at the European Parliament in Strasbourg today, the Ireland South MEP said: “I have met many local business owners in the hospitality sector and they are very worried about the implications of an increase in the VAT rate.
“I’ve heard from SMEs, hoteliers and those in the tourism business in my South constituency who have felt the benefit of the lower VAT rate. They would be concerned for the jobs they provide in the community and about the potential impact on revenue any increase would have.”
Mr Kelly said local business owners appreciated the 9 per cent VAT initiative which was designed to support and protect jobs in the sector, and to help tourism and leisure businesses to lower their cost base and attract more customers.
The lower VAT rate applies to hotels, restaurants, leisure centres, and other attractions. The initiative was introduced to support and protect jobs in the sector and to help tourism and leisure businesses to lower their cost base and attract more customers.
“While it was introduced on a temporary basis, it has obviously been hugely successful and I would encourage Minister Noonan to examine ways to maintain this VAT rate in the budget. It is important that we further support the tourism sector so it can continue to grow,” Mr Kelly added.