Should the VAT rate on tourism be kept at 9% to facilitate super-normal profits ?

carlovian

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Joined
Jun 20, 2008
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5,274
The VAT rate on tourism was cut from 13.5% to 9% during the recession to boost
the hotel and restaurant industry.

The move worked well but with hotel prices above where they were during the boom
and record profits being made by hotel groups, is it time to put it back to 13.5%.

https://www.rte.ie/news/business/2017/0905/902344-dalata-hotel-group-results/

Putting it back to 13.5% would raise 500 million according to the dept. of finance.

https://www.irishtimes.com/business/economy/lower-vat-rate-for-hospitality-sector-may-be-abolished-1.3150019
 


mr_anderson

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Dec 12, 2007
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9,713
9% below €80 a night.
13.5% on the whole thing if above.

The real issue however, is the crushing standard 23% VAT rate.
Far too high and promotes under-the-table transactions.
 

Spanner Island

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Joined
Feb 22, 2011
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23,973
9% below €80 a night.
13.5% on the whole thing if above.

The real issue however, is the crushing standard 23% VAT rate.
Far too high and promotes under-the-table transactions.
Governments never learn that when you cut taxes in an active economy the tax take tends to go up...

It's like they're mentally incapable of accepting it... which is why they're always quick to impose taxes and charges fast in a crisis but then really f***ing slow to reverse them when things pick up a bit...

9% should stay... with 240,000 working in the tourism/hospitality sector... there should be more resources going into it considering the levels of employment it delivers... not less.

And those jobs are truly indigenous and can't be moved elsewhere either.
 

robut

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Apr 6, 2008
Messages
8,729
Can I have the cash back that they took from my small private pension to fund this 9% VAT Rate via that private pension levy.

That money noonan took directly out of my pot/fund ..
 

Man or Mouse

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Joined
Nov 17, 2010
Messages
7,005
Can I have the cash back that they took from my small private pension to fund this 9% VAT Rate via that private pension levy.

That money noonan took directly out of my pot/fund ..
They did that to me also and to add insult to injury, stretched the qualifying period from 20 years to the day you first worked until 66, effectively reducing the contrib OAP for lots of people, particularly women who took career breaks with kids etc.
 


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