The finance minister has insisted that keeping the special VAT rate for tourism would cost hundreds of millions.
Michael Noonan says it will cost 360 million euro a year to keep the 9 per cent rate, which expires in December.
Mr Noonan’s government colleagues and members of opposition parties have been lobbying to keep the special rate for the hospitality industry.
But Minister Noonan’s said that the tourism industries are now strong enough to support the higher rate:
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