Restaurant representatives interacted with Šimonyte: opening not expected, but changes promised due to support

The meeting focused on the second subsidy concept approved by the Government. The government promises to take hotel and restaurant settings into account when allocating support.

Currently, the benefit ceiling for companies envisaged in the second package of government subsidies reaches 100,000. euros. During the meeting, it was agreed that the Government would decide on a more profitable cartel. It is also planned to change the criterion for the drop in turnover: now 60% is provided to be eligible for aid. The meeting decided to propose to reduce the bill by up to 50%, as requested by the Lithuanian Hotel and Restaurant Association.

“The epidemiological situation in Lithuania still does not allow the full opening of accommodation and catering services, so we see that the review of state aid for the most affected companies is also important. State aid is universal, it is aimed at all victims, but there are also separate tourism aid measures after the situation caused by Covid-19: this sector will be promoted through public investment and digitization programs. We understand that there are sectors that have suffered the most, we see them and we support them, ”said Prime Minister Ingrida Šimonytė.

Balnis: “Tax concealment schemes will prove to be the most reliable during a pandemic”

After the meeting, Gediminas Balnis, Vice President of the Lithuanian Hotel and Restaurant Association, states that the Government intends to review the maximum subsidy limit for businesses, but restaurants are not very satisfied with this response.

“Certain changes in support have been taken into account, only discussions on the roof cartel – 100 thousand euro – change continue. We really don’t understand why those limits continue to exist at all. Because for some larger structures, that help is inadequate. All the more so since there are no other aid measures, such as rent compensation, which was factual. There is a great lack of conceptualizations of rent, but we do not want to go back to that, although in our opinion, the state should return and at least regulate those relationships, ”said G. Balnis, who runs the Amber Food restaurant chain.

According to him, the real estate rental market is confused, not all owners apply discounts, although the business is suspended, there is no billing and it is clear that there will be nothing to pay the rent.

He compared the situation in Latvia to make it better: “Pay subsidies to companies every month, and here we have some packages, but the pandemic is prolonged, vaccination is not happening as quickly as imagined in the construction of those measures. According to the EU plan, 25% had to get vaccinated today. and there is only 11%. “

The head of the restaurant chain was outraged that the government should already consider additional measures, especially as current support travels particularly slowly.

“Other countries create tools and the money arrives in weeks, and with our hotels, even within a year, they have received no more support than wage subsidies,” said the vice president of the association.

Last week, Vice Minister of Economy and Innovation Vincas Jurgutis promised the second package of subsidies for the most affected business, whose turnover fell 60 percent. and more, it could start on April 14. And the subsidy ceiling would rise from the initial 100,000. EUR up to 300 thousand. euros.

Balnis says that now the ceiling “may have been raised a little more symbolically.” However, the cost of renting a restaurant network managed by him alone is about 250 thousand. per month.

“These ceilings are inappropriate not only for us, but for all the larger restaurant chains. (…) If we have 50 restaurants in a company, why do we have to suffer from the fact that we have not divided the business into entities smaller? Here there is only one formality for which we should not suffer “, says G. Balnis.

He compares that restaurants are often divided into small businesses just to hide fees and reduce risk for the entire network.

“Now it is such a paradox that all the schemes that were supposed to be hidden for tax purposes will prove to be the most reliable, the most successful during the pandemic. The example we will set in the future is that it is better to have a lot of small businesses and not seem big, ”said G. Balnis.

You would like targeted support for the most affected businesses, such as restaurants, hotels, sports clubs.

Welcome VAT rebate

Restaurant managers support the proposal to apply a reduced VAT rate of 9%. instead of 21 percent.

“We welcome VAT refunds, even without a pandemic, in many EU countries. Some that did not apply before are now, such as Germany, during the pandemic, while others have reduced the VAT rate even further. For this reason, we welcome the correction of the injustice and we are discussing measures after the pandemic, “said G. Balnis.

According to him, half of the companies that suffered the most will not survive the end of the pandemic.

“Everything will have to be paid: both the taxes that arise and the debts that have accumulated. This means that we will have to make a profit, because if we work only with losses, it will not be enough to pay the current payments and return the accumulated taxes, the loans, “warned G. Balnis.

Catering executives discussed the possibility of earlier vaccinating their employees, who are at higher risk of having to interact with foreigners. However, so far there have been no opening speeches; this will be discussed later with the Ministry of Health.

“There are countries that have completely closed restaurants and that have not completely closed restaurants; there is no statistically significant difference. Educational institutions mainly influence nightlife, ”said G. Balnis.

The new aid for businesses is due to start on April 14, G. Balnis calls this term very late.

“We listen to the expectations of affected companies on how to improve support and respond to their expectations. Therefore, we intend to review the currently established criteria for the decrease in turnover and increase the grant limit to help limited accommodation and catering companies to the greatest extent possible ”, says the Minister of Economy and Innovation Aušrinė Armonaitė in the report.

Currently, 5.8 million have been paid to the accommodation and restaurant sector. A total of 1,864 companies in the accommodation and catering sector have received grants. On average, a company has 3,112 euros.

At present, 254 companies have received subsidies in the tourism sector, 796 thousand have been assigned to them. 3,134 euros on average.

The tourism sector also has an exclusive aid instrument for this sector, which is a guarantee that tour operators will comply with their obligations. The measure was used by 41 tour operators, for a total of 2.89 million. guarantees in euros.