The Kerryman (South Kerry Edition)
Pressing need to keep 9% rate
KERRY members of the Restaurants Association of Ireland are urging the Government to retain the special nine per cent VAT rate for the tourism and hospitality industry which, they say, has helped create over 2,300 jobs in Kerry.
THE RAI believe the rate has improved the competitiveness of the sector, while ensuring the viability of many small businesses that have been going through challenging times.
RAI members are asking Minister for Finance and Public Expenditure, Paschal Donohoe T.D, not to return the VAT rate to 13.5 per cent.
A recent report published by the RAI has revealed that 2,343 new jobs in the Accommodation and Food Services sector have been created in County Kerry since the introduction of the reduced VAT rate in July 2011.
This report identifies the direct and indirect employment associated with the introduction of the reduced VAT rate of nine per cent Between Q2 2011 and Q1 2018, the number of people working in the Accommodation & Food Services sector nationally increased by 54,400, taking total employment from 117,300 to 171,700 on a seasonally adjusted basis.
The sector also accounted for 7.7 per cent of total employment in the economy in the first quarter of 2018. At a national level, the increase in indirect employment as a result of the job creation in the accommodation and food Services sector is estimated at 25,024. The increase in direct and indirect employment is estimated at 79,424.
In Q1 2018, it is estimated that 5,325 workers were employed directly in the Accommodation and food services sector in Kerry.
Total employment in the accommodation and food Services sector in County Kerry increased by 1,605 between Q2 2011 and Q1 2018.
Indirect employment as a result of the change in direct employment in the sector is estimated at 738. The RAI believe that the introduction of an increased VAT rate would only serve to undermine competitiveness