Five year VAT freeze 'vital for tourism sector'
Published 19/08/2016 | 07:30
Keeping the 9pc reduced rate of VAT for the food, tourism, and hospitality is vital for the creation of further jobs in the sectors, a new report has found.
According to a report from economist Jim Power, 45,260 jobs have been created across the sectors since the VAT rate was reduced from 13.5pc in July 2011.
The report, which was commissioned by the Restaurants Association of Ireland (RAI), uses national employment data from the CSO and examines the effects the reduced rate of tax has had on tourism related services and goods.
RAI chief executive Adrian Cummins said the report highlighted the sector as a major driver of local employment.
“Our figures show that 31,000 direct jobs and 14,260 indirect jobs have been developed in this sector since July 2011. It is a substantial number of new jobs to result from just one government action. The 9% VAT rate has benefited regions greatly across the country and we would like to see that maintained," he said.