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A VAT cut for the tourism industry is likely to be announced on Tuesday in the budget. Meetings are taking place this weekend to finalize the budget.
The tax reduction would benefit the most affected restaurant, hotel and hospitality sectors, and has been one of the key demands of the industry.
Several high-level government sources indicated that VAT reduction is now likely, and the 13.5% rate applied to the sector is expected to drop to 9%, as was done in the last recession.
The Tourism Recovery Task Force, which was created to examine how the industry could recover, also recommended the cut.
Also in Tuesday’s budget, there will be an increase of 15,000 retraining places in continuing and higher education, especially aimed at young people.
That is in addition to the 35,000 places already announced in July.
It will also focus on helping the self-employed.
For taxi drivers, the license renewal fees will not be applied in conjunction with the improvements to the scrapping scheme along with some other measures that have yet to be finalized.
On the welfare side, the fuel allowance is likely to increase, along with an additional € 5 per week for the living alone allowance.
The package will also include a major live music and entertainment package in the tens of millions of euros range.
The venues would receive a minimum grant of € 10,000 to help subsidize ticket costs, as they address reduced attendance due to social distancing.
The goal is to retain skills and provide a lifeline to the industry, which has been devastated by the Covid-19 pandemic.
The Minister of Media, Tourism, Art, Culture, Sports and the Gaeltacht Catherine Martin has been working to secure significant resources for the sectors most affected by the pandemic.
There would also be smaller packages for schools and universities to put on shows, along with a music creation fund.
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