Finance Minister promises actions "to support both HoReCa sector, consumers of such services"

Chisinau, 12 August /MOLDPRES/- Minister of Finance Natalia Gavrilița reacted to the protest announced by the companies operating in the field of HoReCa (hotels, restaurants, cafes) about the VAT increase, from 10 to 20 percent. The official said she will consult economic agents and civil society to find measures "to support both the HoReCa sector and the consumers of these services".

“I will do my best to create more fair competition and bring those from the dark economy to light, ”says the minister.

"We are already working on a series of measures to encourage work - from lotteries with tax vouchers to intensive checks where there is big tax evasion. We will consult extensively with economic agents and civil society to find other measures (sustainable for the budget) that support both the HoReCa sector and the consumers of these services ”, the official said.

The return to the standard rate of 20 percent from 10 percent was adopted by the government on August 9, along with other tax changes and the International Monetary Fund, which resumed the financing program for the Republic of Moldova.

The economic agents of the hotels, restaurants and cafes sector appreciated this change as "a measure of fiscal austerity". The National Association of Restaurants and Leisure Centers in the Republic of Moldova announced that on August 12, several restaurants, cafes and other leisure venues are planning to suspend their activity for 30 minutes, in protest.

According to the Ministry of Finance, a detailed analysis of 480 economic agents operating in the HoReCa sector shows that in the first five months of 2019, compared to the same period of the previous year, VAT payments decreased by 22 million lei, while sales increased by 39 percent and salaries by 30 percent. Several economic operators in the field said that they will have to stop working after returning to the standard 20 percent VAT rate. The VAT rate for restaurants and hotels was reduced twice in 2018.