Stay and Spend scheme sees low uptake

Calls for €250m Stay and Spend scheme to be used to waive tax bills issued to those who claimed Covid welfare

Only €300,000 of the Stay and Spend Tax Credit initiative has been claimed by consumers. Picture: Pexels

Only €300,000 of the Stay and Spend Tax Credit initiative has been claimed by consumers.

Despite €250m being set aside by the Government for this scheme, there has been a low uptake due to closures in the hospitality industry.

Labour TD Ged Nash obtained figures that showed up to January 18, 4,441 claims for tax relief under the scheme were included in 2020 income tax returns.

Mr Nash says there was a better way to make use of this fund: “A better way of stimulating the economy would be to waive the tax bills of workers that are in the Temporary Wage Subsidy Scheme.” 

According to Mr Nash, Stay and Spend was a "poorly designed scheme introduced in the wrong way and at the wrong time".

Figures show more than 420,000 people availed of Covid welfare schemes last year.

The initiative was announced last July to encourage people to stay in Ireland and spend money in the hospitality sector. However, it was not rolled out until October 1, with the hospitality industry shutting down less than three weeks later.

Many pubs, restaurants, bars and hotels reopened briefly in December, but under level 5 restrictions will remain closed for the foreseeable future.

These rolling restrictions mean many have not been able to take advantage of the Stay and Spend scheme.

Under the scheme, a person must upload a picture of their receipt for accommodation or a meal to the Revenue receipts app before claiming a tax credit when submitting their annual return.

Labour TD Ged Nash said the Stay and Spend scheme was a 'poorly designed scheme introduced in the wrong way and at the wrong time'. Picture:Gareth Chaney/Collins

The sum of €125 can be claimed by an individual or €250 by a couple, with each transaction requiring a minimum transaction of €25. Alcohol and take-away food do not qualify.

Revenue released tax bills earlier this month, showing how much tax workers owe after claiming Covid welfare. 

Mr Nash said: "Most of those workers would owe €600-€700, it's a relatively small amount of money, but it would achieve the same thing that the Stay and Spend scheme was supposed to do and that stimulates local economies."