The VAT rate for the tourism and hospitality sector is to stay at 9% as part of Budget 2014.

Minister for Finance Michael Noonan said the reduction from 13.5% had helped created over 15,000 jobs as well as protecting existing ones, however it was important to reinforce that success.

The Government will also eliminate the Air Travel Tax from April 2014, which it hopes will encourage airlines to develop new routes and build traffic volumes in and out of the country.

Separately, the Government is to undertake a cost-benefit analysis of tax reliefs and incentives available in the agri-foods and fisheries industry.

Mr Noonan said the number of incentives had grown over the years and there was now a "significant information gap" about their effectiveness.

The impact of this analysis will be considered as part of Budget 2015, he said.

As part of Budget 2014's job creation measures, farmers will see their flat rate addition – which compensates them for VAT incurred on farming inputs – rise from 4.8% to 5%.

There will also be an extension of Capital Gains Tax retirement relief relating to the disposal of long-term leased farm land.

Mr Noonan said this was designed to encourage older farmers to lease their land to younger people in circumstances where they have no children willing to take up the work.

Eligibility for young trained farmers' relief will also be extended.