HoReCa REPRESENTATIVES ASK PRESIDENT TO RENOUNCE PROMULGATION OF LAW ON VAT RAISING

Representatives of the National Association of Restaurants and Entertainment Establishments (MAR) submitted an official letter to President Igor Dodon with the request not to promulgate the law on raising the VAT for this branch to the standard 20% from 10%.

The letter authors explain this request by the fact that the decision on raising the VAT was approved without public consultations with HoReCa representatives or a thorough analysis of the problem and the risks for the sector.

“The VAT raising, together with the planned raising of prices for electricity and gas will have negative economic consequences, both for the ordinary consumer and for workers of the HoReCa sector”, maintain the branch representatives, who insist that the lowering of the VAT to 10% in 2018 contributed to improvement of sector’s transparency, the re-investing of capital, the raising of the salary fund.

“We ask to block the decision on raising the VAT for the HoReCa sector, approved by the Ministry of Finance, to renounce the promulgation of this law and to put it for consideration”, the MAR association’s letter says.

As Infotag has already reported, the VAT rate for the HoReCa was halved by the previous Government in 2018 for bringing enterprises out of the shadow and for raising the revenues to the budget. However, according to the new Government, this has never happened, and it intends to return to the previous tax rate at the recommendation of the International Monetary Fund.