Tipperary benefits from reduced VAT rate in food, tourism and hospitality sectors.

A report from the Restaurant Association of Ireland shows that since the reduced rate of 9% came into force in July 2011, over 20,000 jobs have come on stream across the country.

This report uses data from the Central Statistics Office from July of 2011 to the end of the first quarter of this year to track employment figures in the sector.

The VAT rate was reduced from 13.5% to 9% in 2011 in an effort to increase employment in the areas of tourism related services and goods.

735 jobs have been created in County Tipperary during that time in the food, tourism and hospitality sector while the report also says that when indirect jobs are included the figure rises to over one thousand for the county. Nationally, over 21,600 jobs have been created since the new rate was introduced.

The Restaurant Association of Ireland, who are behind the study, says that the figures prove that the new rate has been a major driver of local employment growth.

The tourism industry is calling for the retention of the 9% VAT rate in the upcoming budget which will be announced later this month.