Low VAT is the job for our city

    Liam Edwards and Adrian Cummins, President and CEO of the RIA respectively

    A REPORT by the Restaurant Association of Ireland (RAI) has revealed that 1,661 new jobs in accommodation and food services sector have been created here since the introduction of the reduced VAT rate of 9% in July 2011. The report identifies direct and indirect employment.

    As a result of this and growths in job numbers throughout the country The Restaurants Association is urging Government to retain the 9% VAT rate for the tourism and hospitality industry.

    The RAI is asking Minister for Finance and Public Expenditure, Paschal Donohoe not to return the VAT rate to 13.5%.

    In the first quarter of this year, it is estimated that 3,577 workers were employed directly in the sector in County Kilkenny.

    Total gross annual wage paid to workers was €82.9m. The total net wage paid was €73.5m. 

    The payroll taxes accruing to the Exchequer was €18.3m. Indirect employment as a result of direct employment in the sector is estimated at 1,645. 

    Total employment in the sector here increased by 1,138 between the second quarter of 2011 and the first quarter of 2018.

    The total gross annual wage paid to those extra workers is €26.3 million. The total net annual wage paid to those extra workers is €23.4 million. 

    The payroll taxes accruing to the Exchequer from this extra employment is €5.8 million.

    Indirect employment as a result of the change in direct employment in the sector is estimated at 523.