RAI Seeks 9% VAT Extension

The Restaurants Association of Ireland has called on the Government to retain the 9% Vat rate until the economic recovery is more sustainable.

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The reduction in the Vat rate from 13.5% to 9% for the tourism sector in 2011 has so far created 31,584 jobs and generated huge revenues for the Government, according to the RAI.

 

A total of 21,633 direct jobs have been created and 9,951 indirect jobs, which has results in €433m in social welfare payments and an increased $103m in payroll taxes.
 
“The reduction of Vat on food and tourism services from 13.5% to 9% has been a resounding success since its implementation by Government in July 2011. On behalf of the Restaurants Association of Ireland I wholeheartedly welcome the 31,584 new jobs created as a result of the lower rate of Vat, as outlined in the following report,” said RAI chief executive, Adrian Cummins.
 
“While the 9% Vat is significantly rebuilding our economy in the Food and Accommodation sectors county by county, our industry is still experiencing a three-tier recovery where a divide remains evident between businesses in the capital, urban areas and rural Ireland.
 
The tourism industry may have turned a corner but in order to create another 50,000 jobs and to recover the number of tourists lost since 2007, stability must be maintained in the Irish tourism industry.
 
The Restaurants Association of Ireland has called on the Government to retain the 9% Vat rate until the economic recovery is more sustainable.
The reduction in the Vat rate from 13.5% to 9% for the tourism sector in 2011 has so far created 31,584 jobs and generated huge revenues for the Government, according to the RAI.
A total of 21,633 direct jobs have been created and 9,951 indirect jobs, which has results in €433m in social welfare payments and an increased $103m in payroll taxes.
 
“The reduction of Vat on food and tourism services from 13.5% to 9% has been a resounding success since its implementation by Government in July 2011. On behalf of the Restaurants Association of Ireland I wholeheartedly welcome the 31,584 new jobs created as a result of the lower rate of Vat, as outlined in the following report,” said RAI chief executive, Adrian Cummins.
 
“While the 9% Vat is significantly rebuilding our economy in the Food and Accommodation sectors county by county, our industry is still experiencing a three-tier recovery where a divide remains evident between businesses in the capital, urban areas and rural Ireland.
 
The tourism industry may have turned a corner but in order to create another 50,000 jobs and to recover the number of tourists lost since 2007, stability must be maintained in the Irish tourism industry.
 
“We look forward to playing our part in the jobs recovery and rebuilding Ireland’s economy.”
 
There is further good news for Ireland’s tourism sector regarding Ireland’s Value for Money (VFM) rating as the number of visitors rating Ireland ‘good’ or ‘very good’ VFM has increased from 28% to 40% from 2009 to 2012.
 
Meanwhile, the number of visitors rating Ireland ‘very poor’ or ‘poor’ for VFM has fallen sharply from 40% in 2009 to 16% in 2012,” it added.
 
 
 
 
 
 
 
 
 

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