RAI Report Claims VAT Reduction Has Created 31,000 Jobs
A report commissioned by the Restaurants Association of Ireland (RAI) has claimed that the reduction of VAT from 13.5 to 9 per cent on food and tourism services has helped create more than 31,000 direct jobs in the hospitality sector.
The report also showed that €695 million was contributed to the Exchequer from the accommodation and food services sector for the first quarter of 2016, and that there was indirect employment of 14,260, reports the rte.ie.
As a result of reducing the VAT rate back in July 2011, there was an estimated saving of €620 million in social welfare payments, claims the study.
Commenting on the findings, RAI chief executive Adrian Cummins said: "It is a substantial number of new jobs to result from just one government action. The 9 per cent VAT rate has benefited regions greatly across the country and we would like to see that maintained," adding "The uncertainty surrounding ‘Brexit’ means that the retention of this measure is crucial in maintaining stability in the food, tourism and hospitality sector."