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The RAI is campaigning to get Government to retain the current VAT rate of 9% to support the Restaurant industry. Photo: iStock

The Restaurants Association of Ireland (RAI) say employment in the tourism industry has expanded by 9,000 jobs since the VAT rate was reduced in 2011. The figure comes from a Deloitte/Failte Ireland August 2013 report analysing the impact of the reduction of the VAT rate on Irish Tourism and Tourism Employment.

The RAI is campaigning to get Government to retain the current VAT rate of 9% to support the Restaurant industry and to keep Ireland competitive as a tourist destination and sustain jobs in local communities.

Chief Executive of the Association, Adrian Cummins says that the 9% VAT rate is crucial to the survival of restaurants everywhere.

“We are one of the only industries creating employment in every corner of the country, and if the 9% VAT rate is increased, unfortunately jobs will be lost everywhere as well.

"Restaurants all over Ireland are relying on the VAT to remain at 9% for the survival of their business. We pay the highest catering wage rate in Europe; Ireland has the highest excise duty on wines in Europe and Irish food costs inputs are 18% above the European average. With these challenges facing the industry, it is imperative that the government gives it’s full support by maintaining the current VAT rate of 9%."

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