“It is our attention that the VAT rate will go back up to its original rate at the end of the planned period,” Mr Donohoe told the Oireachtas Committee on Budgetary Oversight. According to the Department of Finance, the temporary reduction in the standard VAT rate applies to about 50 per cent of economic transactions, including item such as clothes, electrical equipment, fuel, alcohol and tobacco. Mr Donohoe, who is also head of the Eurogroup of finance ministers, is likely to play a leading role in this debate. Mr Donohoe said there would be no rapid withdrawal of the various supports put in place to cushion workers and businesses impacted by the restrictions. Mr Donohoe and the Minister for Public Expenditure and Reform, Michael McGrath, were appearing before the committee to discuss parliamentary engagement in the budgetary process.

Source: The Irish Times February 09, 2021 18:30 UTC