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07/10/2013
Jobs Committee Calls To Keep 9% VAT
The Joint Committee on Jobs, Enterprise and Innovation has called for the retention of the 9% VAT rate for food and tourism services.
The move follows a meeting with Adrian Cummins, chief executive of the Restaurants Association of Ireland, on 17 September.
The Committee has now written to Minister for Finance Michael Noonan to request retaining the 9% VAT rate.
Committee Chairman Damien English TD said: "The Joint Committee on Jobs, Enterprise and Innovation recently met with Adrian Cummins, CEO, Restaurants Association of Ireland. The Association had sought a meeting with the Committee to discuss the views of its members in relation to the importance of the retention of the 9% VAT rate in creating and maintaining jobs in the tourism and restaurant sector. The Committee was told that since the VAT cut in 2011, employment in the restaurant/tourism sector increased by approximately 9,000 and this growth will continue with an additional 5,000 jobs to be created over the next 18 months if VAT at 9% remains in effect.
"At a meeting of the Joint Committee this week it was agreed to write to Minister Noonan enclosing a transcript of the meeting of the 17 September and requesting that he give consideration to the proposals outlined at the meeting. The Committee endorsed the proposals in relation to the retention of the 9% VAT rate."
Minister for Tourism Leo Varadkar has endorsed the retention of the 9% rate.
Speaking on the opening day of the Global Irish Economic Forum at Dublin Castle last Friday, he said the resumption of the 13.5% rate in January could "cause harm" to the economy.
(IT/CD)
The move follows a meeting with Adrian Cummins, chief executive of the Restaurants Association of Ireland, on 17 September.
The Committee has now written to Minister for Finance Michael Noonan to request retaining the 9% VAT rate.
Committee Chairman Damien English TD said: "The Joint Committee on Jobs, Enterprise and Innovation recently met with Adrian Cummins, CEO, Restaurants Association of Ireland. The Association had sought a meeting with the Committee to discuss the views of its members in relation to the importance of the retention of the 9% VAT rate in creating and maintaining jobs in the tourism and restaurant sector. The Committee was told that since the VAT cut in 2011, employment in the restaurant/tourism sector increased by approximately 9,000 and this growth will continue with an additional 5,000 jobs to be created over the next 18 months if VAT at 9% remains in effect.
"At a meeting of the Joint Committee this week it was agreed to write to Minister Noonan enclosing a transcript of the meeting of the 17 September and requesting that he give consideration to the proposals outlined at the meeting. The Committee endorsed the proposals in relation to the retention of the 9% VAT rate."
Minister for Tourism Leo Varadkar has endorsed the retention of the 9% rate.
Speaking on the opening day of the Global Irish Economic Forum at Dublin Castle last Friday, he said the resumption of the 13.5% rate in January could "cause harm" to the economy.
(IT/CD)
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