Politicians fudge on staycation plan.

satguy

Looks like they have just made a mess of what could have been good for our economy.

One of the most eye-catching measures announced this evening is the ‘stay and spend’ tax rebate for Irish holidaymakers looking to take a ‘staycation’ this year.

It means that individuals can reclaim 20% of their expenditure on hotel stays and meals — but not alcohol — in the form of a tax credit at the end of the year.

The max that you can spend to qualify for the scheme is €625 for individuals but that’s doubled for married couples, meaning that you’ll be able to reclaim €125 or €250 at the end of the year.

That will come into play in October, rather than September as had been reported during the week.

Although the scheme been criticised for failing to incentivise restaurant and hotel visits during the summer months, Taoiseach Micheál Martin said the idea is to try to boost tourism in the lean winter

This really looks like a lost opportunity to me, but with 3 party leaders to keep happy, it was bound to just be a fudge.

Spanish Eyes

Few go on a break in Ireland between October and March, or whatever the dates are, sorry just guessing here.

And those that do are often retired or have no kids and can generally afford it.

Ten of Swords

Tell us how it should have been done satguy

satguy

For a married couple to claim back €250,, they would have to be on the high tax rate, and would need to spend €1,250 on their hotel stay.

And even then its just in winter time.

LOL

satguy

Ten of Swords wrote: »

Tell us how it should have been done satguy

Just post a €150 voucher to every married couple in ireland, all vouchers must match printed name with name on passport at check out, and must be used between now and next June.

SlowMotion321

Why not just subsidize the hotels? Let them sell the room at the reduced rate and as soon as they provide proof of booking/stay reimburse them! Saves on holiday makers having to apply for a refund and all the extra civil service manpower and paperwork involved in doing so!

Ipso

SlowMotion321 wrote: »

Why not just subsidize the hotels? Let them sell the room at the reduced rate and as soon as they provide proof of booking/stay reimburse them! Saves on holiday makers having to apply for a refund and all the extra civil service manpower and paperwork involved in doing so!

I would predict every hotel in Ireland celebrating the feast of maximum occupancy.

SlowMotion321

You would probably get some of that sure but you could say the same for people going on holiday, for the most part however it would incentivise hotels to up their game and try to encourage customers to come and healthy competition rather than ringing of hands and asking for government handouts. How many stories have you heard about people having a bad stay somewhere? Less of that when the more punters you can encourage to come and stay and tell their friends how good a time they had!

SlowMotion321

SlowMotion321 wrote: »

Why not just subsidize the hotels? Let them sell the room at the reduced rate and as soon as they provide proof of booking/stay reimburse them! Saves on holiday makers having to apply for a refund and all the extra civil service manpower and paperwork involved in doing so!

Not sure there's anything complicated about the tax credit system that seems to be planned. Revenue do millions of tax refunds on expenses every year, very efficiently, and are good at monitoring for fraud.

With the economic slowdown, there'll be fewer expense/rebate claims in general, so Revenue probably won't even require additional resources.

The system you've proposed, above, could be open to manipulation. What's to stop me (if I had a hotel) from making a booking on my sibling's credit card, then cancelling it after showing proof to Revenue, and 'selling' the bed twice?

At least with tax credits, the customer is in control.

SlowMotion321

A Tyrant Named Miltiades! wrote: »

Not sure there's anything complicated about the tax credit system that seems to be planned. Revenue do millions of tax refunds on expenses every year, very efficiently, and are good at monitoring for fraud.

With the economic slowdown, there'll be fewer expense/rebate claims in general, so Revenue probably won't even require additional resources.

The system you've proposed, above, could be open to manipulation. What's to stop me (if I had a hotel) from making a booking on my sibling's credit card, then cancelling it after showing proof to Revenue, and 'selling' the bed twice?

At least with tax credits, the customer is in control.

Nothing really but the same could be said the other way round, I was suggesting it more in that it might encourage hotels to look at the way they promote themselves and deliver their services, they are too expensive and not good enough too often, I have stayed in plenty of places over the years that were sub standard and overpriced, I am (probably naively) giving them the benefit of the doubt. Of course if you own a hotel and your name is Healy Rae figuring out some way to screw the government and everyone who didn't vote for you is to be expected!

SlowMotion321

SlowMotion321 wrote: »

I was suggesting it more in that it might encourage hotels to look at the way they promote themselves and deliver their services, they are too expensive and not good enough too often, I have stayed in plenty of places over the years that were sub standard and overpriced, I am (probably naively) giving them the benefit of the doubt.

Well, there's nothing at all wrong with placing trust in people, that's a good thing.

However, with the hotels and restaurants, we saw what happened when they reduced the vat rate during the Great Recession. First, most establishments didn't pass on the reduction. And then when they increased it again in January, customers saw another price rise. In other words, the taxpayer paid twice for what was supposed to be a saving to the taxpayer.

The industry is again asking for a VAT cut which, considering their form, should be rejected. The credit should, this time, go directly to the consumer.

Allinall

satguy wrote: »

Just post a €150 voucher to every married couple in ireland, all vouchers must match printed name with name on passport at check out, and must be used between now and next June.

What about unmarried couples?

suicide_circus

Allinall wrote: »

What about unmarried couples?

shoulda put a ring on it

SlowMotion321

Allinall wrote: »

What about unmarried couples?

Well those fornicating sinners will just burn in hell!

SlowMotion321

A Tyrant Named Miltiades! wrote: »

Well, there's nothing at all wrong with placing trust in people, that's a good thing.

However, with the hotels and restaurants, we saw what happened when they reduced the vat rate during the Great Recession. First, most establishments didn't pass on the reduction. And then when they increased it again in January, customers saw another price rise. In other words, the taxpayer paid twice for what was supposed to be a saving to the taxpayer.

The industry is again asking for a VAT cut which, considering their form, should be rejected. The credit should, this time, go directly to the consumer.

Adds a whole new level of irony to 'biting the hand that feeds you'!

KaneToad

SlowMotion321 wrote: »

Well those fornicating sinners will just burn in hell!

😅

ILoveYourVibes

SlowMotion321 wrote: »

Why not just subsidize the hotels? Let them sell the room at the reduced rate and as soon as they provide proof of booking/stay reimburse them! Saves on holiday makers having to apply for a refund and all the extra civil service manpower and paperwork involved in doing so!

They are already subsidizing hotels with wage subsidies though.

Hotels have called for this to be extended. http://www.redfm.ie/news/coronavirus/irish-hotels-federation-calls-for-extension-of-wage-subsidy-scheme/

I agree they have to do more though.

Amirani

satguy wrote: »

For a married couple to claim back €250,, they would have to be on the high tax rate, and would need to spend €1,250 on their hotel stay.

No, this is completely wrong. Maybe you should go and read a bit more to understand how this works, then you can come back and criticise it?

Fairly hilarious to come on here giving out about something and not having a notion of how it works.

SlowMotion321

ILoveYourVibes wrote: »

They are already subsidizing hotels with wage subsidies though.

Hotels have called for this to be extended. http://www.redfm.ie/news/coronavirus/irish-hotels-federation-calls-for-extension-of-wage-subsidy-scheme/

I agree they have to do more though.

So much for having faith in people, I guess we sill just have to let the market find it's own level!

ILoveYourVibes

SlowMotion321 wrote: »

So much for having faith in people, I guess we sill just have to let the market find it's own level!

I doubt that will work. We will have to find some way to subsidize them.

No one i know wants to stay in a hotel right now for fear of catching the virus.

We are not traveling abroad and we are not staying in hotels here either. You don't know who else is staying there etc.

Businesses are going to need some form of support.

The free market concept is total bollix.

Edgware

Spanish Eyes wrote: »

Few go on a break in Ireland between October and March, or whatever the dates are, sorry just guessing here.

And those that do are often retired or have no kids and can generally afford it.

When you have a Ryanair taking off for the U.K. Prague Amsterdam etc every 10 minutes you can understand people not going on home breaks but it will be different this Autumn/Winter. Athlone Westport Killarney etc will be very attractive for short breaks

SlowMotion321

KaneToad wrote: »

��

I haven't been a regular forum user for quite some time and am obviously not up to date on some conventions, I've seen this kind of reply a few times, please alleviate my ignorance!

ILoveYourVibes wrote: »

I doubt that will work. We will have to find some way to subsidize them.

No one i know wants to stay in a hotel right now for fear of catching the virus.

We are not traveling abroad and we are not staying in hotels here either. You don't know who else is staying there etc.

Businesses are going to need some form of support.

The free market concept is total bollix.

So what do you suggest then? I agree the free market only really works in economics class but there is an element of it still in existence! So if not that then what?

Edgware

ILoveYourVibes wrote: »

I doubt that will work. We will have to find some way to subsidize them.

No one i know wants to stay in a hotel right now for fear of catching the virus.

We are not traveling abroad and we are not staying in hotels here either. You don't know who else is staying there etc.

Businesses are going to need some form of support.

The free market concept is total bollix.

The hotels up and down the country are reporting a steady increase in the occupancy rate.
Of course some people are apprehensive about catching the virus but hotels and restaurants are making great efforts to ensure social distancing, hygiene etc is maintained.
As for " the free market concept is total bollix" statement. That's rubbish. Once a profit can be made there will be people willing to invest.
Of course there will always be numpties who hanker back to the days when the Party sent you on holidays to resorts of their choice inside the Iron Curtain