Tourism VAT – the case for and against a tax hike

By Business Editor David Murphy It is almost certain that Finance Minister Michael Noonan will increase VAT on restaurants and hotels in next week’s Budget. His original plan was to temporarily reduce the tax from 13.5% to 9% from July 2011 until December 2013 as a stimulus measure for the tourism industry. The money for the tax cut came from the controversial 1.6% levy on pensions, which expires next September. As a result VAT is due to return to 13.5% …