CALLS for Government to retain the 9 per cent VAT rate have been made by representatives of the tourism and hospitality sector after 3,000 jobs were created in Limerick by Michael Noonan’s 2011 Budget decision.
With 171,700 workers employed nationally in the accommodation and food services sector that is worth €3.98 billion to the economy, the Restaurant Association of Ireland has called for Government to further support the more than 7,000 Limerick workers employed in the sector.
A recent report published by the Restaurant Association of Ireland (RAI) revealed that 3,123 new jobs have been created in Limerick since the introduction of the reduced VAT rate of 9 per cent in July 2011.
In light of this report, the RAI is urging Government to retain the 9 per cent VAT rate as they believe it has improved the competitiveness of the sector while ensuring the viability of many small businesses that have been going through challenging times.
Adrian Cummins, RAI Chief Executive said: “In terms of creating new jobs in the hospitality sector, the introduction of the 9 per cent VAT rate in July 2011 has been a major driver of local employment growth.
“The 2018 report recognises tourism as Ireland’s most important indigenous sector, providing considerable employment across Ireland. In the context of a country where there is a strong imperative to boost employment and economic activity, the ongoing health of the sector is of vital importance.
“The RAI believe that the lower VAT rate is an important component of the tourism sector and the introduction of an increased VAT rate would only serve to undermine the competitiveness of the industry and the viability of many small businesses across Ireland,” Mr Cummins concluded.
