Ireland Joins France In Cutting VAT

Tomorrow VAT in Ireland will be slashed to 9% on discretionary spending and the tourist industry. When they did this for restaurants and hotels in France at the beginning of 2009, it’s reckoned that around 29,500 jobs were created in the entertainment industry. The British Beer & Pub Association are putting the pressure on for a similar move to take place in the UK:

“Cutting VAT could create thousands of jobs in British pubs, bars and restaurants, boosting tax revenues, and helping out consumers. It’s time for the UK to catch up. With this sensible, job-creating move, Ireland is just the latest in a long line of EU countries to cut VAT on food in the hospitality sector, with the UK looking increasingly like the ‘odd one out'”

Guido won’t say this very often, but, Balls is right on this one, a nice summer VAT cut would do wonders for consumer spending, confidence and growth.




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