Government’s reduction of VAT rate has contributed to the creation of 30,000 jobs

15/08/2014

Fine Gael TD for Dublin Fingal, Alan Farrell, has welcomed a new Fáilte Ireland report which shows that the reduced VAT rate of 9%, introduced by the Government in 2011, has contributed to the creation of 30,000 jobs in targeted sectors.

“I am pleased that the reduced VAT rate, which was introduced by this Government in 2011 for the hospitality and tourism sectors, has contributed to the creation of 30,000 jobs. These are very encouraging figures as they highlight the effectiveness of the Government’s focus on the tourism sector as a catalyst for economic growth. Not only has this VAT cut spurred job creation, bit it has facilitated the pass through of this reduction to the prices paid by consumers. Following this, Fáilte Ireland has found the perception of value for money, across all visitors, has improved.”

“In addition to the benefits of this initiative on the tourism and hospitality sectors, the jobs which have been created as a result provide a benefit of roughly €165 million to the Exchequer through tax income and savings made in social welfare. In fact, tax on spending by overseas visitors to Ireland last year also contributed more than €100 million to the Exchequer which is evidence of the importance of tourism to the State’s economic recovery.”

“It is clear that this measure, originally introduced as part of the Government’s Jobs Initiative, has generated employment in the tourism industry and boosted tourism overall. Tourism is a focal point of the local economy in Dublin Fingal with many beautiful attractions and scenery throughout the constituency. As such, local communities throughout the North County will have felt the benefits of the 9% VAT rate over the past few years. We must now work to ensure that the local economy continues to feel the positive impacts of such a positive initiative over the coming years.”