Minister for finance Paschal O'Donohoe has been warned by tourism minister Brendan Griffin that the tourism industry's reduced VAT rate of 9% is "sacrosanct".
Among fears that the rate will be raised to 13.5% in the next budget, Griffin told TDs and senators present at a Fine Gael parliamentary party gathering in Galway last week that increasing the 9% VAT rate would be a threat to the hospitality sector with Brexit looming, and received applause for his assertion, according to The Business Post.
"City-Tax"
It is understood that Griffin favours the introduction of a European-style "city-tax" to capture revenue from tourists rather that raising the reduced VAT rate. However, despite the fervent response to Griffin's speech, Donohoe would only say that decisions would have to be made.
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