The Minister for Tourism says he is hopeful the 9% VAT rate for the hospitality sector will be kept in the upcoming budget.
Michael Ring has acknowledged that the measure has created 15,000 jobs and saved the country €50 million in social welfare payments by boosting employment.
The Restaurants Association of Ireland (RAI) have previously claimed that there are plans to raise the VAT rate on food and tourism services in the budget to 13.5%.
It adds that the restaurant and hospitality sector was hit "particularly hard in the downturn", and that before the current VAT rate of 9% was introduced in 2011, restaurants were closing at the rate of one per day.
The association says it sector employs 63,000 people and that an extra 5,000 positions are expected to be created over the next 12 months if the VAT rate remains at 9%.
But it cautions that its sector may be "decimated" without the support of government.
The final headline figure for the Budget is expected to be signed off by Ministers, after the latest data on the economy is released later.
Exchequer Returns to be published this afternoon are the last official data due out before the budget is announced on October 15th.
Minister Ring told Breakfast here on Newstalk that his department has been in talks with the Finance Minister Michael Noonan.