Budget 2017: Restaurateurs Support Pro jobs and Pro Tourism Budget

Budget 2017

Restaurateurs Support Pro jobs and Pro Tourism Budget 2017

Restaurant Owners Support Retention of 9% Tourism Tax

  • 9% VAT rate gives assurance to Restaurant sector in light of Brexit
  • Restaurateurs pleased with no increase in excise duty.

The Restaurants Association of Ireland (RAI) have expressed their cautious welcome today following the announcement of Budget 2017. The statement comes after Budget 2017 revealed the Government will retain the 9% VAT rate for the tourism and hospitality sector and will not be increasing excise duty on wine. The association have also voiced their frustration that employers PRSI bands will not be widened.

The retention of 9% VAT for the tourism and hospitality sector has been welcomed by the association. The low rate VAT, which was introduced in July 2011, is imperative for the sustaining and growing the sector, particularly in border and rural regions. The association is pleased to see no increase in excise duty for a second year in a row, however, excise duty in Ireland is still the highest in Europe with consumers paying 64% tax on a bottle of wine. A reduction of excise duty would be a move that is pro-jobs, pro-business and pro-tourism.

Adrian Cummins, Chief Executive of The RAI commented, “In our Pre Budget Submission, we set out a number of objectives that needed to be met. We stressed that Budget 2017 needed to put Tourism, Hospitality and Food at the centre of our recovery. The Retention of VAT at 9% into 2017 is crucial not only for the sustainability of restaurants and businesses in the tourism sector but also to job creation and the continued growth of our economy. We are also happy to see no increase in excise duty for a second year in a row.”

The success of the lower rate of VAT is evident in the 41,200 new jobs that have been created since its introduction in 2011.

President of the Restaurants Association, Anthony Gray stated, “The cost of doing businesses for restaurateurs is increasing year on year. The cost of operating atourism business in Ireland continues to be higher than the EU average across a range of metrics, putting the sector at a disadvantage internationally. I’m happy to see the 9% tourism tax retained for another year to help businesses and ensure sustainability and growth particularly in rural and border areas.


For further information contact:

Adrian Cummins, Chief Executive Officer

Restaurants Association of Ireland

Telephone: +353 1 6779901

Mobile: +353 86 8263311

Email: info@rai.ie

Website: www.rai.ie


Notes to the Editor:

The Irish restaurant industry employs 72,000 people (1 in 4 tourism jobs) and contributes €2 billion to the Irish economy each year.

  • Irish restaurateurs pay the highest catering wage rate in Europe.
  • Ireland has the highest excise duty on wines in Europe.
  • Irish food costs inputs are 18% above the European average.

(‘Cost of Food Preparation Report’, commissioned by Fáilte Ireland)

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