The Alliance of Small and Medium Enterprises of Moldova is against food stamp taxation and VAT increases for the HORECA sector.

The Alliance of Small and Medium Enterprises of Moldova is against food stamp taxation and VAT increases for the HORECA sector.

In a letter sent to the authorities of the country, the members of the association express disagreement with the tax policy measures announced by the Ministry of Finance. The alliance believes that the increase from 10% to 20% of the VAT rate in the HORECA sector will have a negative impact on the activities of restaurants and catering companies. The effect of such measures may be an increase in the phenomenon of tax evasion, disloyal competition, a reduction in the wages of workers in this industry and a decrease in local and foreign investment in this sector. The Alliance of Small and Medium Enterprises of Moldova reminded that the reduction in the VAT rate for HORECA was discussed as early as 2017, however, the tax was actually reduced from October 1, 2018. An analysis of the activities of the members of the alliance showed that this decision had a positive effect on the work of companies, and the tax deductions of companies in budget. The Alliance of Small and Medium Enterprises of Moldova believes that it is necessary to analyze how the increase in VAT will affect the entire industry in order to understand the real picture. As for the taxation of food stamps, they are in addition to the salary, which the employer can provide in addition, therefore it is not correct to convert food stamps into salaries.Moreover, this is another source of additional income from VAT, as a simple consumer can order food only in certain outlets that accept such coupons, with the issuance of a cash receipt. Food stamps are also a way to increase the transparency of the activities of all operators involved. The alliance insists on maintaining a preferential tax treatment, as it is, among other things, an element in the fight against the shadow economy. In a popular statement, the organization also requires that the predictability of business regulation be ensured, that decision-making is transparent and that the impact of regulation on economic activity in the country is analyzed. The association believes that major reforms should be carried out no more than once every 3 years, and minor changes should be carried out no more often than once a year. This is necessary to ensure the sustainability of business with local and foreign investments. Alliance of Small and Medium Enterprises of Moldova advocates for conducting consultations with business and civil society, as well as for conducting specific calculations and analyzing how these changes may affect economic activity, respect for the rights and interests of entrepreneurs. The Alliance of Small and Medium Enterprises of Moldova unites more than 50 small and medium enterprises. 90% of Moldovan enterprises and almost 70% of the total employed population work in the SME sector. // 29.07.2019 — InfoMarket.

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