As the Irish government cut VAT from 13.5% to 9%, cinema ticket prices are set to drop accordingly. The VAT reduction on cinema tickets came into effect from Friday 1st July and gives rise to a reduction in admission prices of 4%.
Ominxplex Cinemas with cinemas across the country in areas such as Carlow, Cork, Drogheda, Galway, Limerick, Longford and Tullamore have reduced their rates exceeding the VAT reduction with between 4.4%-5% reductions. Irish Multiplex Cinemas with cinemas in Athlone, Ballymena, Dundalk, Dun Laoghaire, Mullingar and Thurles also introduced the reduced ticket prices immediately from last Friday. A €10 cinema ticked would be reduced to €9.60 if the VAT reduction is passed on to customers.
Other cinemas to recently confirm ticket reductions include the IFI, Cineworld and Movies@ Cinemas in Dundrum and Swords
The newer reduced VAT rate of 9% applies to businesses such as restaurants, cinemas, hotels, theatres, newspapers and hairdressers. It aims to encourage consumer spending and to boost the tourist industry. The measure is set to last until December 2012 and will be reviewed for the 2013 budget. Although business’ are not obliged to pass on the reduction to customers, government officials are encouraging business to pass it on and for consumers to support business that reduce prices by voting with their feet.
