The Government will favour a tax debt warehousing scheme for tourism and hospitality companies rather than return to a 9% VAT rate for the industry.
Finance Minister Michael McGrath said, last week, that he has no plans to lower the 13.5% hospitality and tourism VAT rate back down to 9%, despite ongoing calls for a return to the lower rate.
The main reason for that is to avoid the floodgates opening for similar calls from other sectors of the economy.
Instead, Minister McGrath said he hopes to unveil a new tax debt warehousing scheme for the hospitality sector in the near future, with a proposal with Revenue in the “advanced stages”.
