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VAT to be cut as part of the Governments July stimulus package

David Abbott by David Abbott
23/07/2020
in News & Sport
Kilkenny hosts information session on Enterprise fund this morning
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The VAT rate will be reduced as part of the July stimulus plan announced this evening.

There’s also going to be changes to the help to buy scheme as part of the €7 billion package.

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The government has been announcing details of the €7 billion July stimulus plan.

The surprise item is a reduction across the board in the 23% rate to 21% between September this year and February next year.

First time buyers will also get a boost.

For the rest of this year they will be able to get up to 10% or 30,000 euro back on the cost of a new home under the help to buy scheme – up from 5% or €20,000 at present.

There’s to be a staycation subsidy back on €625 spent holidaying in Ireland which will take the form of a tax credit next year.

There will be access to grants of up to €25,000 for businesses as well as low interest loans.

Taoiseach Michael Martin says the package is extremely wide-ranging.

Meanwhile, John Hurley, CEO of Kilkenny Chamber of Commerce says, “this is certainly good news.  It’s news we’ve been waiting for some time and indeed from a Chamber of Commerce perpective we’ve been lobbying the Government tirelessly on issues that need addressing so as to help businesses that are eally on their knees having great difficulties dealing with the consequences of the pandemic.”

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