Restaurants Association Of Ireland Warmly Welcomes Retention Of 9% VAT Rate
Adrian Cummins, Chief Executive of The RAI commented, “In our Pre-Budget Submission, we set out objectives that we wanted met. Today, in Budget 2018 our key issues have been addressed. The Retention of VAT at 9% into 2018 and beyond is crucial, not only to the sustainability of restaurants and businesses in the tourism sector but also to job creation and the continued growth of our economy.”
The rising cost of doing business meant retention of VAT at 9% was more important than ever. Ireland is still operating in a three-tier economy, Dublin is galloping ahead and tourism hotspots have reported a good year, there is still however many parts of Ireland, including rural and boarder counties where business is deeply challenging. The VAT remaining at 9% was crucial to theses parts of Ireland.
The success of the lower rate of VAT is evident in the 37,800 new jobs that have been created since its introduction in 2011 and in the savings of €756 million to the Exchequer in the past six years.
The RAI also called on the Government to reduce the current rate of excise duty in their Pre-Budget Submission 2018. While there was no reduction, the RAI are relieved that there was no increase in excise duty in Budget 2018. Ireland pays the highest excise duty on wine in Europe. Excise has increased by 62% since 2012, with the tax take on a standard bottle of wine now over 50%.
Adrian Cummins said, “Despite calling for a reduction of 15% in excise duty in our Pre-Budget Submission, we are happy to see no increase in excise duty for a third year in a row. It should be noted that excise increases not only impact restaurants, hotels and pubs. These increases introduced during the financial crisis as an emergency measure have created significant cash-flow issues for distributors and importers, as many have to pay excise as an up-front cost.” Adrian Cummins continued, “the budget that was delivered today will bring a positive response from the restaurant and tourism industry.”