Minister Presses for Extended 9% VAT

The Minister for Tourism has said she is pressing for the temporarily reduced VAT rate for tourism and hospitality to be extended further.

Introduced to help assist the recovery of the sectors, the 9% rate is due to return to 13.5% at the end of August. However, Catherine Martin said the issue is ultimately one for the Minister for Finance, Paschal Donohoe.

"I will be pressing for it, but like everything in relation to how we respond to the crisis and how it impacts on tourism, I think that if it alters the tourism world, it will have to be considered in the context of the budgetary cycle," she said.

Earlier she told the Irish Tourism Industry Confederation that she appreciates the concern within the industry about the issue. "Everything has to be kept under review because we are in a state of flux and because of the current crisis in Ukraine," she said.

Speaking to the media afterwards, Ms Martin said record levels of funding had already been provided to the sector in the last budget. "I think we are in a positive place, and from my engagement with industry from any engagements I've done abroad as well, there is pent up demand and tourists want to come back to Ireland," she said.