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Deputy Brendan Griffin.
KERRY Fine Gael TD and Deputy Government Chief Whip, Brendan Griffin, has called for an early signal to the tourism and hospitality sector that the 9% VAT rate will continue into 2022.
The reduced rate of 9% VAT was introduced as a temporary measure to help businesses during the Covid pandemic and is due to revert to 13.5% at the end of 2021.
Deputy Griffin recently raised the case for extending the 9% rate into 2022 through a Dáil question with Minister Paschal Donohoe and was told that the matter would be considered in the context of the budget next October.
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However, at this week’s meeting of the Fine Gael Parliamentary Party, Deputy Griffin said that amongst other supports, business owners need certainty now about what the VAT rate will be in 2022, as many are already taking bookings for accommodation and events such as weddings and conferences.
He said that it would be unthinkable that the Government would consider reverting to the 13.5% VAT rate for 2022 given the current circumstances, and said that the Government must not wait until October and must make an early and correct call on the VAT rate.
Deputy Griffin also called for a clear Aviation Plan from Government without further delay to help plan for the safe restart of international tourism and repeated his call for a new bank holiday on the last Monday of September to help extend the 2021 tourism season.
He also reiterated his calls for increased support for pubs, including access to reopening grants for all pubs regardless of whether they sell food or not, as well as clear reopening guidelines for the sector without further delay.
