VAT increase would be 'huge blow' to tourism industry

The Government is being urged to keep the reduced 9% VAT rate for restaurants, hotels and the tourism industry.

The Government is being urged to keep the reduced 9% VAT rate for restaurants, hotels and the tourism industry.

The Restaurants Association of Ireland says 6,500 jobs have been created since the rate was introduced in July 2011.

The rate also applies to restaurant and catering services, hotel and admission to cinemas, theatres and use of sporting facilities.

Adrian Cummins, CEO of the Restaurants Association of Ireland, said that it has had a very positive impact on the industry.

"It has given a lifeline to our industry, it's given a lifeline to restaurants across the country," he said.

"Any increase in the VAT rate would be a huge blow to our industry, and it would be a huge blow to the competitiveness of our country when we're trying to drive tourism numbers upwards, trying to attract more tourists into the country."

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