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Government to examine 9% VAT rate

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By Michelle Crean

Finance Minister Michael McGrath has this week said that the Government will, in the coming weeks, examine the 9% VAT rate.

Minister McGrath was speaking in the Dáil when asked by Kerry TD Brendan Griffin, as well as a number of other TDs from across the country, to retain the 9% VAT rate for the tourism and hospitality sectors.

Fine Gael's Brendan Griffin questioned if the VAT rate would stay the same or be changed.

"To ask the Minister for Finance if he will retain the 9% VAT rate for the tourism and hospitality sector; if his attention has been drawn to reports of the vital importance of this measure for counties such as Kerry, which has a proportionately higher reliance on the tourism and hospitality sectors; and if he will make a statement on the matter".

Minister McGrath said that he'd take all the questions together.

"The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive," he answered.

"Currently, the 9% rate applies on a temporary basis to the hospitality and tourism sectors which includes the supply of hotel accommodation and the supply of meals in hotels (excluding alcohol and soft drinks) until 28 February 2023. The 9% rate was introduced in recognition of the fact that the tourism and hospitality sectors were among those most impacted by the public health restrictions put in place throughout the pandemic. Through no fault of their own, bars, hotels and restaurants had to close on multiple occasions in response to the public health crisis. From 1 March 2023, these sectors are due to return to the 13.5% rate. The supply of alcohol and soft drinks remains unchanged at the standard rate of VAT (23%). As I have said on a number of occasions, the Government will, in the coming weeks, examine the full suite of taxation and other measures that are due to expire at the end of February. In making any decision the Government will balance the costs of the measures in question against their impact."

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N71 Moll’s Gap road remains closed following Killarney National Park fire

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N71 Moll’s Gap road remains closed following Killarney National Park fire

The N71 Moll’s Gap road remains closed this Wednesday lunchtime following a significant forestry fire at Five Mile Bridge on Tuesday evening.

Kerry County Fire Services personnel from Killarney, Kenmare, and Killorglin, alongside the National Parks and Wildlife Service (NPWS) fire team, worked on-site to tackle the blaze. Two helicopters were deployed to extract water from the lake to quench the flames.

The fire was brought under control at 10:30pm on Tuesday evening. However, several areas are still smouldering today and are currently being assessed by emergency crews.

The road is closed as a safety precaution while preventative measures continue, and local diversions are in place. Helicopters remain active at the scene today, taking water from the lake to dampen down areas on the opposite side of the road.

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Human activity blamed for devastating wildfire in National Park

A major wildfire that destroyed approximately 25 hectares of Killarney National Park on Tuesday evening, July 14, is believed to have been started by human activity. The blaze broke out […]

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A major wildfire that destroyed approximately 25 hectares of Killarney National Park on Tuesday evening, July 14, is believed to have been started by human activity.

The blaze broke out in the Five Mile Bridge area of the park along the Killarney-Kenmare road at around 5:00pm. Members of the public quickly raised the alarm, enabling emergency services and National Parks and Wildlife Service (NPWS) personnel to quickly mobilise to the scene. This early notification and swift action were critical in preventing the fire from escalating into a much more severe incident.
Fire crews from Killarney and Kenmare responded to contain and suppress the fire, with on-ground support from NPWS staff. Aerial support was also deployed to assist ground crews, with helicopters using Bambi buckets to target the flames from above.
The affected area is estimated to be around 25 hectares in size. It includes a mixture of dry heath, wet heath, and blanket bog, as well as pockets of native old oak woodland.
NPWS Divisional Manager Eamonn Meskell praised the rapid coordination of the emergency response.
“Thanks to the rapid response and coordinated efforts of all emergency personnel, NPWS staff and dedicated fire emergency crew, Kerry Fire and Rescue Service crews, rapid aviation assistance was deployed which was very effective bringing the fire under control,” Mr. Meskell said. “We will be on site on Wednesday morning to assess the affected area and monitor for any remaining hotspots and determine whether any further firefighting operations are required.”
The Minister of State with special responsibility for Nature, Heritage and Biodiversity, Christopher O’Sullivan TD, expressed frustration at the cause of the blaze.
“This is devastating and it was started by human activity,” Minister O’Sullivan said. “It was completely avoidable. We can do better than this. Thank you to the National Parks and Wildlife staff and Kerry Fire and Rescue Service and aviation crews who battled the fires in Killarney National Park.”

Photos by Valerie O’Sullivan

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