9% VAT rate to stay for 2012

The lower VAT rate of nine per cent for tourism products will remain in place next year, according to the Minister for Transport, Tourism & Sport Leo Varadkar.

He was speaking at the recent opening of the Good Food Ireland conference in Dublin’s Shelbourne Hotel where he told guests, “The Government introduced the lower VAT rate of nine per cent earlier this year in the Jobs Initiative. This rate is significant because it principally benefits home-grown employers which are based in Ireland.
“The vast majority of hotels, restaurants and leisure businesses are Irish-owned and any profits stay in Ireland. The lower VAT of nine per cent applies to these domestic businesses whose services and products are home-grown. It has been very successful in boosting the tourism industry, which is showing good signs of recovery and in creating jobs."

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