Gavrilita: The government will propose to establish a reduced VAT rate of 6% in the HoReCA sector for 2 years.
The Prime Minister said this during a meeting with representatives of the National Association of Restaurants and Entertainment (MĂR), at which the epidemiological situation and measures to support enterprises and workers in the industry were discussed. Gavrilita, in particular, said that the government will develop a legislative initiative to establish a VAT rate of 6% for the HoReCA sector for the next 2 years, as well as to provide a tax deduction to economic agents when purchasing protective equipment for personnel. In addition, in the event of a worsening epidemiological situation and the introduction of new restrictive measures that would affect the operating hours of catering establishments, the state will compensate for the hours not worked due to restrictions. This will allow employers and workers to maintain working relationships and avoid layoffs. It should be noted that currently the VAT rate in the HoReCA sector is 12%. At the beginning of this year, a legislative initiative was adopted to reduce the VAT rate to 6% on food and / or beverages (excluding alcoholic beverages) and on accommodation services during an emergency in the field of public health. However, this law will come into force only on November 21. Accordingly, during the period of emergencies in healthcare introduced in Moldova on September 10, the VAT rate in the HoReCA sector remains at the level of 12%. According to the press service of the MĂR Association, during a meeting with the Prime Minister, representatives of the organization noted the importance of creating an advisory council under the National Emergency Commission for Public Health. The associations believe that it is necessary to ensure the predictability and clarity of the measures that the commission introduces, and to provide alternatives to the measure, as well as to conduct a constant dialogue with the specialized associations. “We need to ensure fairness in the adoption of possible restrictive measures, separation of responsibility for public health safety and avoidance of abuse, introducing restrictions only in some areas. We need adequate solutions that have an epidemiological impact, and not just PR, ”the representatives of the organization emphasized during discussions with the prime minister. Gavrilita, in turn, spoke in favor of a constructive dialogue with the organization and confirmed the authorities' readiness to support business in this difficult period in order to avoid bankruptcy of enterprises and loss of jobs. A detailed discussion of specific measures for the HoReCA sector will take place on the platform of the Economic Council under the Prime Minister.// 10.09.2021 — InfoMarket.
