Tourism will need tax breaks if war occurs, says Fine Gael

THE Government will have to offer the tourist industry major financial breaks if the sector is to survive the fallout from an Iraqi war, according to Fine Gael.

Party tourism spokesperson Jimmy Deenihan wants Finance Minister Charlie McCreevy to immediately give VAT exemptions to tour operators. He said the 1% hike on the commercial rate of VAT has hit the sector hard and many operators are in financial trouble.

“Most operators had sold holidays when VAT was 12.5% but the Budget changes means they are going to have to absorb much higher costs.