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Conservative Mykolas Majauskas, chairman of the Seimas Budget and Finance Committee (BFK), estimates that the relief would cost around 90 million. by year. These funds would be provided in the redistributed state budget.
On Tuesday, the parliamentarians will discuss the VAT relief initiated with representatives of the restaurant sector.
Some members of the BFK question the effectiveness of the VAT rebate and therefore propose to reimburse the rental compensation applied during the first quarantine. It is also feared that large caterers, rather than small ones, will benefit from the relief.
According to M. Majauskas, the VAT deduction is offered “not to lower the price of the chop”, but to support the restaurant business affected by the coronary crisis, which is why it would act as a subsidy for this business.
“We believe that it is important to give companies the perspective that after the end of the pandemic and the restrictions of economic activity, this sector will be helped to fend for itself,” confirmed M. Majauskas to BNS.
The relief would apply not only when eating at a catering establishment, but also when ordering takeout. It would also apply to non-alcoholic beverages sold in restaurants, but not to alcohol.
Algirdas Butkevičius, a member of the mixed group of members of the Seimas, told BNS that with such a proposal the rulers were “mistakenly trying to solve the problem of the pandemic”, because the activities of the catering sector must be reactivated other than by reducing taxes. .
“The problem is that people cannot come to the closed sector, they are willing to pay the full price, and 21 percent. VAT, if it could reach restaurants, cafes, bars,” emphasized BNS A. Butkevičius.
The “employee” Vytautas Gapšys says that he will see an alternative to VAT relief: rent compensation, which would be more effective than reducing VAT.
“The hospitality establishments usually rent the premises. They see the benefits of compensation and ask for it, ”said V. Gapšys.
The “peasant” Valius Ąžuolas is convinced that large-scale catering networks “with millions of turnover” will benefit more from VAT relief, rather than small businesses. Furthermore, according to him, it is not clear why, of the many affected areas, VAT relief is offered to only one sector.
“We need to help the business, but we should not think of one, but of all,” said V. Ąžuolas.
He also says that the restaurant sector would be saved not only with a VAT refund, but also with quarantine exemptions.
“First of all, the sector must be allowed to work and win,” he told BNS.
According to M. Majauskas, 21 States of the European Union of the 26 Member States of the Community now apply VAT relief to the restaurant business. According to him, around 30 thousand people work in the Lithuanian restaurant sector. people and 4 thousand. companies, most of which are small and medium-sized.
The current Prime Minister Ingrida Šimonytė and M. Majauskas submitted a similar amendment to the Seimas Value Added Tax Law in April 2020. Then, after submission, the Seimas accepted the amendments for consideration, but after the Government presented a negative conclusion, the Seimas did not return to the amendments, although in the autumn the “peasant” Aušra Papirtienė also registered a similar amendment.
If the Seimas enacts the VAT relief, public catering would be the sixth area to which the 9% applies. VAT rate. This rate is fixed indefinitely for heating, firewood and firewood for heating, books and passenger transport, and for accommodation services until the end of 2022.
5 percent The VAT rate is currently applied to newspapers, magazines and other periodical publications, with the exception of publications of an erotic and / or violent nature or that do not comply with professional ethics, as well as those printed in which paid advertising represents more than four-fifths of the total area.
