Jim Power’s maths lesson: how 13.5 minus 9=45,260

  • 45,260 jobs due to 9pc VAT rate
  • Retention of VAT rate a live issue for sector
Adrian Cummins, CEO of the Restaurants Association of Ireland

Adrian Cummins, CEO of the Restaurants Association of Ireland

A report for the Restaurants Association of Ireland by economist Jim Power said that 31,000 direct jobs and 14,260 indirect jobs have been developed in the food and hospitality secort since the VAT rate was reduced from 13.5pc to 9pc in July 2011.

Drawing on employment data from the CSO, the report examined the effects the reduced rate of tax has had on tourism related services and goods.

The reduction is a temporary measure and the Department of Finance sources have hinted that the rate will be increased to 13.5pc again in the budget for 2017.

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RAI chief executive Adrian Cummins said “this is a substantial number of new jobs to result from just one government action. The 9% VAT rate has benefited regions greatly across the country and we would like to see that maintained.

The Irish Tourist Industry Confederation pre-budget submission oints out that only two countries have VAT rates of 10pc or more and 17 of the 19 Eurozone countries have VAT rates of 10pc of lower


  • Watch here Restaurants Association CEO Adrian Cummins discussing the threat to the 9pc VAT Rate.
  • Watch here IHF president Joe Dolan on the issue
  • Watch here Patrick Delaney of Soolnua on the issue
  • Listen here to the panel discussion covering the 9pc VAT rate, Brexit and other matters and involving Michael Vaughan, Adrian Cummins, Paul O’Toole, and Patrick Delaney and Joe Dolan at the AGM and summit of the Irish Hospitality Institute in the Conrad Hilton Hotel in Dublin
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