The inquiry will consider differences in VAT rates and other costs between Northern Ireland’s hospitality and tourism sectors compared with the Republic of Ireland, which cut VAT on hospitality and food from 13.5% to 9% from the start of this month.
The committee is seeking views on the potential impact of a reduced VAT rate on the hospitality and tourism sectors in Northern Ireland and has issued a call for evidence from interested parties.
It is inviting written submissions to questions that take into account any other tax and policy changes that could help to increase the competitiveness of the hospitality and tourism sectors in Northern Ireland; the impact the VAT rate in the Republic of Ireland has had on hospitality and tourism businesses in Ireland and Northern Ireland; and what other factors contribute to variations in costs between hospitality and tourism businesses in the Republic of Ireland and Northern Ireland.
Other questions consider how the overall costs of operating a tourism and hospitality business in Northern Ireland compare to equivalent businesses in the Republic of Ireland; whether tourism and hospitality businesses close to the border with the Republic of Ireland more acutely affected by variations in taxation and other policy costs; and any differences in behaviour between consumers in Northern Ireland and the Republic of Ireland.
Submissions must be made by 1 September.
The inquiry comes as VAT continues to be a hot topic in the hospitality industry. A campaign calling for VAT on hospitality to be cut from 20% to 10% has now surpassed 250,000 signatures following its consumer launch at the start of this month.
