The Tánaiste is in favour of extending the 9% VAT rate for the tourism and hospitality sector into next year.
However, Leo Varadkar says he can't promise anything at this stage as such a decision would have to be made in October's budget.
The 9% VAT rate is due to run until the end of this year.
The Minister for Enterprise, Trade and Employment says he is aware of the pressure on Kerry's economy because of the county's dependence on tourism.
Leo Varadkar says the tourism sector hasn't been able to fully benefit from the reduced VAT rate: