Hospitality Vat Rate To Be Maintained

Irish hoteliers and restaurateurs can look a more secure future with the Minister for Transport, Tourism & Sport Leo Varadkar telling a hospitality conference today that the lower 9% VAT rate for tourism products will remain in place next year.

Speaking at the official opening of the Good Food Ireland conference in the Shelbourne Hotel in Dublin, Minister Varadkar said: "I can confirm that the 9% VAT rate will apply throughout 2012.

"The Government introduced the lower VAT rate of 9% earlier this year in the Jobs Initiative. This rate is significant because it principally benefits homegrown employers, which are based in Ireland.

"The vast majority of hotels, restaurants and leisure businesses are Irish-owned and any profits stay in Ireland. The lower VAT of 9% applies to these domestic businesses whose services and products are homegrown.

"It has been very successful in boosting the tourism industry, which is showing good signs of recovery, and in creating jobs," he said, adding that 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."

(BMcC/GK)