BUDGET 2021: Reduction in hospitality VAT rate will save jobs – Farrell

DUBLIN Fingal TD and Fine Gael Spokesperson on Climate Action, Alan Farrell, has welcomed the reduction of VAT in the hospitality and tourism sector, included in Budget 2021.

Deputy Farrell said: “The VAT rate on the hospitality and tourism sector is being reduced to 9%, which will kick-in on November 1st, this is a positive move that will benefit countless businesses in the sector and ultimately prevent job losses in the tourism and hospitality industry.”

“In Fingal we have done a good job of developing the area as a tourism destination in recent years, as such, we have seen job growth in the hospitality sector in Fingal over the last number of years. We must protect as many of these jobs as possible.”

Deputy Farrell continued, “The Tourism Recovery Taskforce recently published its report into the industry and a VAT reduction for the sector was one of the recommendations made to the Minister, and one which I supported.”

“The pandemic has a severe impact on the tourism and hospitality sector, this has particularly affected younger people who make up a significant number of those employed in these businesses and I am committed to helping the industry return stability in short-term and return to profitability and growth in long-term.”

Deputy Farrell added, “The Government has also taken steps to dramatically increase the amount retraining programmes, which will help those negatively affected by the impact on the hospitality sector, upskill and find alternative employment, ensuring no one is left behind.”