Reduction of VAT Leads to Increase in Employment

Reduction of VAT Leads to Increase in Employment

It goes without saying that Britain has been facing tough economic times after its exit from the European Union. However, history should not subject the government of Britain to too much criticism over this factor. The truth, although most people are not willing to accept, is that over the last ten years or so, some significant accomplishments have been achieved. Here, we will scrutinise the reduction of the value-added tax in Dublin, so as to create over five thousand jobs for the unemployed qualified citizens in Ireland.

Reduction of VAT Leads to Increase in Employment

Image Courtesy: Universal Weather

Reduction of the Value Added Tax
The Restaurant Association of Ireland in the year 2014 published a report indicating that five thousand nine hundred and eighty four jobs in various departments such as tourism and hospitality have been established in Dublin. The findings go ahead to show that the 5984 employment opportunities created in Dublin are more than the number of employees working for Microsoft and Google in the same city.

Some key findings that have arisen from the reduction in value added tax include stimulating factors such as increased wage bill and reduced taxes. Also, the results cover the number of direct and indirect employment opportunities put in place. Further statistics show that increased revenue meant for the Exchequer account.
By reducing the value added Tax (VAT) residents of Dublin benefited greatly from increased employment. In the long run sectors such as the tourism and transport industries have improved significantly. In Ireland for example, overall visit rose to eighteen percent after more personnel were employed.

In your expert opinion, would you suggest reducing value added tax so as to improve the GDP? And if so, does this strategy apply to all markets? Which markets would face little improvements through reduction of VAT?

Share This: