Report on the rate of VAT main Dalata McCann attacks ‘IMBA’

  • Report on the rate of VAT main Dalata McCann attacks ‘IMBA’
    Independent.t. E.
    The head of the largest hotel group in Ireland to appear in the report, which criticized the special rate of the tourism sector VAT 9pc and insists that he has not lost hope that she will remain in the budget next month.
    https://www.independent.ie/business/irish/dalata-chief-mccann-attacks-imbalanced-vat-rate-report-37284072.html
    https://www.independent.ie/business/article36651242.ece/1b87e/AUTOCROP/h342/2018-02-28_bus_38907812_I1.JPG

  • Email

The head of the largest hotel group in Ireland to appear in the report, which criticized the special rate of the tourism sector VAT 9pc and insists that he has not lost hope that she will remain in the budget next month.

The July report from the Ministry of Finance said that VAT rate of 9pc, which was introduced in 2011, is now “a significant deadweight” in Economics and a return to a rate of 13.5 PC will not harm the tourism industry.

He said that the reduced rate has cost the Treasury €3.2 billion between 2011 and 2018.

The Irish Congress of trade unions also said it was time to return to a rate of 13.5 PC.

But the tourism sector says the incision is allowed to create tens of thousands of jobs.

And yesterday, Dalata CEO Pat McCann branded the report as “so imbalanced”.

“He never mentions where that has actually happened as a result of lower VAT”, – he said and added that in 2018 the VAT take from 9pc of the course is “towards €1.1 billion”.

“This idea that it will drag on the Treasury is just not true, it’s not confirmed,” said Mr. McCann.

“Another thing that is not solved is 79,000 jobs were created in the result,” he said.

Mr McCann yesterday as Dalata reports strong performance in the first half, said Dalata should not be a proxy for how wide the Irish hotel sector works. “We not industry,” he said. “We wanted to beat, and it’s probably a little unfair to my colleagues in other sectors who do not have the same resources or the same level of knowledge that we have at Dalata.”

The group warned that if the VAT rate returns to 13.5 PC, it could cut annual revenue by about 2pc.

Mr. McCann said that if the rate is raised that the sector should be given 12 to 18 months to prepare for it.

Dalata said its revenues in the first half rose 10.6 PC EUR 180.6 m, while its profit before interest, tax, depreciation and amortisation (EBITDA), and 12 PCs. in €50.3 m.

Despite the group declares a maiden dividend, EBITDA ahead of forecasts, its shares fell by 3.7 PC in early trading in the first half of the 4.2 PC below.

The company agreed to purchase a new hotel in Manchester is scheduled to open in 2021. Four-star, 276-room hotel will operate under Dalata is a great brand, and will be the third hotel in the city.

Last week, Dalata has also announced that it has agreed to pay 100 million euros for the purchase of a new hotel in London.

Dublin was 64 PCs of Dalata EBITDA in the first half. The company Dalata for a room in the capital was 10.3 to PC, while its average value in the city is 5.7 PC higher at €122.38.

In regional Ireland, average room rate Dalata rose by 7.2 PC to €91.98.

Online Business Classes