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A new scheme has been launched today to help drive off-season sales in the hospitality sector, which has been negatively affected as a result of Covid-19.
The Stay and Spend program will allow people to claim 20% of their bill, up to a maximum of € 125 per person (or € 250 for a married couple) in an income tax refund for those who spend up to € 625 ( or € 1,250 for married couples) in restaurants, pubs, hotels, B & Bs and other qualified businesses.
It will run from the fall of this year until the spring of next, and includes the Christmas period.
Catherine Martin, Minister for Media, Tourism, Art, Culture, Sport and Gaeltacht, is encouraging people to support their local cafes, restaurants and hotels as they make use of the plan.
Speaking about RTÉ’s Drivetime, he said that people who spend between € 25 and € 625 can get money back by submitting their receipts to the Revenue Receipts Tracker app.
Ms. Martin said that relief can be claimed for expenses incurred from October 1 to December 31, 2020 in fiscal year 2020, while money spent between January 1 and April 30 can be claim in fiscal year 2021.
“I don’t see it that complicated really. You dine in a restaurant or you stay in a hotel. You have your income receipt tracking app. You take a picture of the receipt. You send it in and you’re done.
“Revenue will take care of everything after that. All we ask is that companies be a part of this by registering with Revenue now.”
Minister Martin said a coupon scheme would have taken too long to implement when companies need the support “ready to go in October.”
She said the Stay and Spend scheme encourages additional spending, when a coupon would have encouraged consumers to spend only the value of the coupon.
The tourism sector “needs immense support,” added Ms Martin.
The minister said she is in constant contact with members of the arts, music and sports sectors as she believes they are “in the best position to find the best way to address public health safety concerns.”
“We need to think outside the box to open these events in a safe way.”
Regarding travel and the possibility of COVID-19 testing at airports, Minister Martin said: “If more extensive testing is needed to open up connectivity, then that needs to be considered.”
Earlier today, the Finance Minister said there will be “some people who won’t have enough income taxes at the end of this year or next to make it worth their while” taking advantage of the new Stay and Spend scheme.
But he stressed that the scheme will be available to 2.7 million people.
Speaking on RTÉ’s News at One, Paschal Donohoe said the government’s approach was to “do this quickly” to provide immediate support to hotel business owners.
He said that 75% of people on the minimum wage will have enough responsibility from the USC at the end of the year to benefit from the scheme.
The minister said there would have been “logistical challenges” in implementing a voucher scheme for the hotel sector.
“It would have been difficult to get one for everyone in the country and we could not have done it quickly.”
Donohoe said that spending on alcohol is not included in the plan. He said that since the plan is being implemented at a cost of more than 200 million euros, it is appropriate that it focuses on food and accommodation.
The minister said that the reopening of wet bars is part of the government’s discussion on the medium-term strategy to face Covid-19, but said that “for now the regulations are clear and in the interest of public health.”
In launching the plan, Donohoe said that the hospitality sector is vital to the Irish economy and represents more than 10% of the country’s workforce.
The plan is just one part of the government’s July job stimulus, which also includes wage subsidy plans and the recent reduction in the VAT rate.
“This new tax credit will provide a much-needed boost to the hospitality sector during the fall and winter months by encouraging people to spend, whether it’s through a vacation at home or eating out,” he said.
To qualify for participation in the program, companies must be registered for VAT and have a current tax clearance certificate.
Companies must also be registered with the relevant official bodies, as appropriate, such as Fáilte Ireland and the HSE Environmental Health Service.
They must register with the Department of the Treasury to participate and display the appropriate signage indicating their participation in the scheme.
The executive director of the Doolin Hotel in Co Clare welcomed the plan, but said it was confusing and people were unsure how to claim the government-backed tax break.
Speaking to RTÉ’s Morning Ireland, Donal Minihane said that reservations for next season have dropped by as much as 90% and that many hotels will close midweek to try and survive until next spring.
While he encouraged people to take advantage of the plan, he said it could be “a little clearer, simpler and better promoted.”
“There are too many obstacles to overcome to claim the refund,” Minihane said, and people are not clear when they will get the benefit back.
He said that it can also exclude low-income people and state benefits since it is managed through the income tax system, adding that he would have preferred that “everyone would be sent a € 100 voucher.”
He said that it was great to see Irish families during the summer, but that there are not many markets available for the winter season.
Wine growers complain about the new law
The Vintners Federation of Ireland (VFI) said the introduction of a new law, which states that restaurants and pubs serving food must now record all individual food orders and keep that data for 28 days, is “bureaucracy crazed “.
Padraig Cribben, VFI CEO, said it will add a heavy burden to companies already struggling.
“This is crazy. The idea that a pub should record all the food ordered by each customer and then store it for 28 days is a crazed bureaucracy.
“Not only is it too impractical for our members to implement it, but why does the government think this law will help in the fight against Covid? It’s crazy.”
Mr Cribben said the new regulation was a Statutory Instrument introduced by Health Minister Simon Donnelly “without any consultation with the hospitality sector”.
The Statutory Instrument, which goes into effect today, also includes confirmation that a closing time of 11:30 p.m. applies for pubs serving food.
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