October 12, 2021
Employment Wage Subsidy Scheme
The Employment Wage Subsidy Scheme will remain in place in a graduated form until end April 2022, six months after the easing of restrictions on Oct 22nd and two months after the PUP ends.
- EWSS will remain as is for the months of October and November
- Businesses availing of the EWSS on the 31st of December 2021 will continue to be supported until the 30th of April 2022
- Across December, January and February, a two-rate structure of €151.50 and €203 will apply
- For March and April 2022, the final two months of the scheme, a flat rate subsidy of €100 will be put in place. The reduced rate of Employers’ PRSI will no longer apply for these two months
- The scheme will close to new employers from the 1st of January 2022
Tourism VAT Rate
The 9% VAT will remain in place until the end of August 2022, no change from last summer’s National Economic plan.
Commercial Rates
Over €60 million will be allocated to extend the commercial rates waiver for the last quarter of this year targeted at the hospitality, arts and certain tourism related sectors.
Strategic Tourism Investment
- €90 million for an aviation package
- €50 million will be provided for further Tourism Business Continuity Supports. This funding will assist vulnerable tourism businesses to survive until Summer 2022 when it is expected that inbound tourism will recover. Eligible businesses include: inbound tour operators, coach tourism operators, strategic tourism transport operators, tourism attractions, activity centres and accommodation. This Scheme is operated by Fáilte Ireland.
- €35million increase in the Tourism Marketing Fund in 2022 to support the delivery of a marketing strategy to help restore inbound tourism to Ireland. This strategy will focus efforts on Ireland’s most successful markets on an unprecedented scale. This increase also includes €5m to begin preparations on the Programme for Government commitment to deliver a themed year project, The Year of the Invitation, aimed at stimulating additional demand.
- €27million for a range of industry initiatives including:
- €7m for Domestic Marketing and Festivals: Given the projected slow return of international visitors it will be important to increase investment in domestic marketing and festivals. Festivals are a key motivator for visitors to travel and provide an urgency and a specific timeframe in which potential visitors must visit Ireland, while domestic visitors will be crucial in sustaining businesses and jobs in the sector.
- Investment in Digital: Through its Digital that Delivers investment programme, Fáilte Ireland will also be in a position to support the digitalisation of tourism businesses to grow their business in a sustainable manner, consistent with modern consumer preferences.
- €10m for Skills Development and staff retention: The additional provision will allow for targeted investment in human capital, skills development and education to help address particular employment challenges faced by tourism businesses in attracting talent, assisting skills development and retaining staff.
- American College Football Event: The hosting of American College Football, on an annual basis, will provide a significant boost to a sector that is facing a challenging recovery from COVID-19 impacts.
- €4m to develop a register of short term and holiday lets as outlined in Housing for All – a New Housing Plan for Ireland.
- €36.5million in capital funding for tourism product development for the delivery of enhanced visitor experiences in line with the objectives of the National Development Plan 2021-2030.
- Taxation arrangements will be amended for international flight crews, with details to be provided.
- There will be VRT revision to support the adoption of electrical vehicles, but no changes announced regarding the car rental fleet.
Full details of all the measures announced in Budget 2022 can be found here.