Economist calls for government to keep 9% Vat rate for hotels

Economist calls for government to keep 9% Vat rate for hotels

The government should keep the special Vat rate for hotels in the budget, according to a leading economist.

It has been reported the 9% rate may be increased as the tourism sector continues to perform well.

The measure could be used as a way for the Finance Minister to raise more revenue.

Economist Jim Power does not think it is a good idea because many hotels in rural Ireland are still struggling.

"I don't think that you should adopt a tax policy based on what's happening in a few hotels in Dublin,"

he said.

"If you look at hotels in rural Ireland, for example, occupation rates, particularly out of season, are much lower.

"Restaurants in towns around the country which are big employers, as are hotels in rural Ireland, they are struggling.

I am a fan of the 9% Vat rate. I think it was a great idea at the time. I think it's still essential.

Digital Desk

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