By-election candidates urged to support 9% VAT rate in Food, Tourism and Hospitality Sector

By-election candidates urged to support 9% VAT rate in Food, Tourism and Hospitality Sector

Election candidates urged to support 9% VAT Rate in Food, Tourism and Hospitality Sector 

The Restaurant Association of Ireland (RAI) is calling on the all the candidates in the upcoming Carlow-Kilkenny Dáil by-election to support the retention of the 9% VAT rate for the Food, Tourism and Hospitality sectors. In what has been a massive boost to the local economy, 769 new jobs have been created between Carlow and Kilkenny since the 9% VAT rate was introduced in July 2011.

Speaking about the up-coming Dáil by-election which is to be held on the 22nd May, Adrian Cummins, Chief Executive of the Restaurants Association of Ireland, said that “the Restaurant Association of Ireland is calling on all the candidates in the Carlow-Kilkenny by-election to commit to maintaining the 9% VAT rate which has seen 769 new jobs created in the food and accommodation sector between Carlow and Kilkenny since it was introduced in July 2011.”

The RAI is to hold an open meeting for all the candidates on Tuesday 12th May at 10.30am in Café Sol, William Street, Kilkenny to highlight the major impact the 9% VAT rate has had in the Food, Tourism and Hospitality sectors in Carlow and Kilkenny. The meeting will seek assurances from all the candidates or their representatives that they will continue to prioritise the retention of the 9% VAT rate, which is vital to the Food, Tourism and Hospitality sector.

“The 769 new jobs between Carlow and Kilkenny is a very conservative estimate and does not include the number of indirect jobs created in the wider economy as a result of the increased economic activity. When the effect of this is included, the total number of new jobs is even more impressive, with an additional 353 indirect jobs created. This brings to 1,122 the total number of jobs in created in Carlow and Kilkenny since July 2011.” continued Adrian Cummins, Chief Executive of the Restaurants Association of Ireland.

The employment figures are from the updated report published by Restaurant Association of Ireland entitled “Job Creation in the Food, Tourism and Hospitality Sectors 2015”, which uses national employment data from the Central Statistics Office. The Report examines the impact of the introduction of the new VAT rate in July 2011, when it was reduced from 13.5% to 9% for tourism related services and goods.

Significant savings for the Exchequer

The Report from the RAI demonstrates the considerable social welfare savings made by Exchequer as a result of the increase in the number of jobs.

Adrian Cummins, Chief Executive of the Restaurants Association of Ireland said that “the Exchequer made a remarkable €23.07m in social welfare savings as a result of the 769 direct jobs created between Carlow and Kilkenny since the VAT rate was reduced.”

“These new jobs have also meant additional revenue for the Exchequer from the increase in payroll tax receipts. The contribution from employee taxes (USC and PRSI) and employer taxes (employers PRSI) from the 769 direct jobs has delivered €3.66m in revenues for the Exchequer.” continued Chief Executive of the Restaurants Association of Ireland, Adrian Cummins.

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The report published by the RAI on “Jobs Creation in the Food, Tourism and Hospitality Sectors 2015” has been sent to every election candidate in the Carlow-Kilkenny by-election.

For further information please contact;

For further information contact:

 

Adrian Cummins,

Restaurants Association of Ireland

11 Bridge Court, Citygate,

St. Augustine Street, Dublin 8.

 

Mobile: +353 86 8263311

Telephone: +353 1 6779901

Fax: +353 1 6718414

Email: info@rai.ie

Website: www.rai.ie

Twitter: @rai_ie

Facebook: www.facebook.ie/RestaurantsAssociationOfIreland

 

 

 

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