9% Vat retention for tourism sector

The tourism industry has broadly welcomed the retention of the 9% Vat rate for the sector — but has been warned to pass on savings to customers.

Finance Minister Michael Noonan said the reduced Vat rate had contributed to an extra 23,000 people being employed in the sector since it was introduced in 2011, but warned tax relief must be passed on.

“In light of rising prices in this sector, it is incumbent on the industry to ensure this relief continues to be passed through fully to the consumer. However, let me be very clear: The taxpayer cannot be the only stakeholder keeping costs down in the sector. If prices begin to rise, the case for retaining the measure diminishes,” he said.