THE VAT reduction introduced 18 months ago has helped create hundreds of jobs in the local hospitality industry and the Government is being urged to keep the reduction in place come budget 2014.
The Restaurant Association of Ireland, led by its regional president, Limerick restauranteur Padraic Frawley, is urging the Government to maintain the lower 9 per cent VAT figure to allow the industry survive and thrive.
Launching their campaign to keep the VAT reduction in place, Mr Frawley said “We’re taking this campaign on the road because we believe it’s extremely important that the VAT rate is kept at 9 per cent. Money generated by this reduced VAT rate has kickstarted the engine room of our economy- the restaurant sector.
“In the past eighteen months, over 10,000 new contracts were issued and this growth will continue with an additional 5,000 jobs to be created over the next year if the 9 per cent rate remains in effect”, he said.
The Irish Tourist Industry Confederation (ITIC) has found that the overall benefit was about €90million, but when all jobs supported in the economy are counted, the estimated employment gain is increased by 40 per cent.
The report found that the VAT reduction was passed on to consumers in the tourism sector with prices falling, despite the fact that the cost of many of the inputs used by the sector have risen.
This ITIC say that the VAT rate is vital to the survival and future development of the food, tourism and hospitality sector in Ireland.
