A measure that was brought in temporarily, now seems set to stay. Minister for Transport, Leo Varadker, has annouced that the temporary 9% VAT rate will now be staying until the end of 2013.
The rate applies to a range of services in the tourism sector, including hotels, restaurants, leisure centres, and attractions.
Mr Varadkar stated that “Following recent discussions with the Minister for Finance, I have obtained an assurance that the lower rate of VAT will be maintained during 2013 so that businesses, tour operators and customers alike can plan for the 2013 season knowing that the 9% rate will apply. Initial indications suggest that the policy has worked well and there has been an increase in employment in the sector with prices charged to consumers falling as well.
“Early indications are that the policy is working. Employment among accommodation and food providers has increased by around 6,300 since July 1, last year. “