April 19, 2021
Business News

‘Breathing space’ – Kilkenny tourism chiefs call for permanent VAT cut to save jobs

Kilkenny Tourism has called on the Government to make the reduction in VAT to 9% permanent to help save thousands of local jobs.

The local tourism body broadly welcomed the range of measures and supports announced for the tourism industry by Finance Minister Paschal Donohoe in Budget 2021.

Some of these measures include the Covid-19 Recovery Support Scheme (CRSS), which allows businesses that have been forced to close their doors due to Government restrictions to claim up to €5,000 per week. Kilkenny Touris  said this would  enable “viable tourism and hospitality businesses [to] survive the next six months”.

Chairman Brian Tyrell said: “The tourism and hospitality industry has faced unprecedented challenges in recent times and drastic measures were required to stimulate and reboot the sector. While we very much welcome the measures announced [in Budget 2021], we would call for the reduction of VAT to be a permanent measure to allow hotels to contract clearly and effectively with international tour operators in the long term and keep our prices in line with our competitors, particularly the UK.”

Mr Tyrell added: “In particular the allocation of €55 million to Failte Ireland in cash grants for the worst affected businesses, and €5 million for tourism capital investment projects, helps to safeguard our businesses and the future of the industry. In addition, the rates waiver gives businesses some much needed’ breathing space’ and allows them to focus on returning to growth, especially through the forthcoming winter months.”

PHOTO: Kilkenny Tourism

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