Minister for Tourism Mr Leo Varadkar has urged all tourism related businesses to roll out the VAT cuts to consumers, where applicable.
The 4% VAT reduction on tourism services was announced by the Irish government in May 2011 as a means to improve consumer spending in the hospitality and service industries.
Mr Varadkar has strongly emphasised the need for the quick introduction of the VAT cuts, as this government initiative will only properly work if relevant businesses pass on the 4% VAT reduction, thus giving better value to consumers, and ultimately get them spending again, and as a whole improving Irish tourism.
The VAT rate has been cut from 13.5% to 9% and on average will take one euro off menu prices in restaurants, make Irish guesthouses and hotel prices more competitive, and reduce entry fees to cinemas, theatres and qualified sports activities.
While no business can be punished for reducing their rates, the Minister has lauded those for reducing their rates, as the scheme has the potential to boost job creation in the Tourism sector.
The aim of the VAT reduction programme is to increase competitiveness in the Irish tourism sector, create jobs, reduce costs, and ultimately give better value to the tourist.
Have you experience the VAT decrease as a consumer? Do you find that it gave more value for money? Let us know your thoughts in the comments box below. Thank You.