Low tourism VAT will create more jobs for Tipperary

Fine Gael TD Noel Coonan has said that the decision by the Minister for Finance, Michael Noonan TD, to maintain the 9% VAT rate for services in the tourism and hospitality sector will directly lead to further job creation in Tipperary.

“The reduction of VAT on tourism services from 13.5% to 9% has had a direct and significant impact on job creation in the hospitality industry which is an important part of our local economy. The decision to retain this lower VAT rate will benefit consumers, business owners and jobseekers in Tipperary. The reduction of VAT on food and accommodation services was specifically designed to generate jobs and it has been hugely successful,” said Deputy Coonan.


“Figures released by the Central Statistics Office show that employment in food and accommodation services is up by more than 23,000 since the Government reduced the rate of VAT for tourism services. Over 8,000 of the 31,600 jobs created nationally in the last twelve months were in the hospitality sector. This has a trickledown effect in every town and village in the county.

“The reduced lower rate of VAT is worth €2,250 for every €50,000 turnover within the tourism sector, and that is a significant boost in an industry which operates with tight margins. This increase in has enabled hospitality focused businesses in Tipperary to keep their prices low and, in doing so, attract more business which requires them to take on more staff.

“This extension of the lower rate will enable the industry to plan and to market for next year in the knowledge that Ireland will be able to offer lower-cost tourism options to tourists and local people who are frequenting our, pubs, hotels and restaurants.

“This primary focus of this Budget is to help secure the economic recovery which is very much underway. We are determined that the sacrifices made by the Irish people as a result of the collapse our economy under the last Government will not be wasted. The difficult measures undertaken are starting to bear fruit. However, we acknowledge that many people have not yet felt the benefits of a recovering economy in their daily lives. We will not allow the country to slip back – the mistakes of the past will not be repeated,” concluded Deputy Coonan.