Noonan softens stance on raising tourism Vat rate

Finance Minister Michael Noonan is leaving open the possibility of retaining a lower Vat rate for the hospitality and tourism sectors, amid increasing pressure from within Fine Gael.

Leo Varadkar, the tourism minister, said the 9% rate introduced as a temporary measure in the last budget “has been one of the Government’s most successful jobs stimulus policies”.

The previous 13.5% rate is due to kick in again next year, but TDs are concerned that this will lead to widespread job losses in the pub, restaurant, and hotels trade.