Relentlessly pushing the government to reduce “crippling” IVA (VAT) rates for the restaurant sector, hoteliers and restaurateurs are once again appealing for sense in the long-running controversy.
As they say in a detailed release this week, the government continually points to tourism being a pillar of the economy, yet it refuses “to adopt measures that would create a favourable economic environment” for businesses involved.
Thus “thousands” have been forced to close their doors, with the consequent loss of jobs and additional expenses for the state in benefits and lost income.
AHRESP, the restaurant and hoteliers’ association, has done its homework – showing how other countries have actually reduced IVA in the sector, to help the economy.
Ireland (to 9%), France (10%), Sweden (12%), Greece (13%) and even Spain (10%) have tackled the issue the intelligent way, says AHRESP, for the good of the nation. Why can’t Portugal?
It’s a question that up until now has fallen on deaf ears, but could there be a chink in the government’s resolve?
AHRESP writes that it “welcomes the declarations made in the Azores by the Prime Minister pondering the hypothesis of replacing the archipelago’s IVA rate for the restaurant sector”.
The Azores rate, like that of the mainland, rose from 13% to 23% when the government came to power three years ago.
The IVA hike has been one of the most unpopular austerity measures yet – and it has consistently shown itself to have been self-defeating.
Passos Coelho’s remarks “show recognition” for the glaring error, says AHRESP, and a form of justice “that we hope will be extended to the whole of national territory, correcting what has been suggested in the proposed State Budget for 2015”.
It is a valiant try and the association has pulled out every bit of its heavy artillery, declaring that the worth of tourism has once again been “ignored” in the government’s proposals for next year’s budget.
Meantime, Diário Económico reports that government ministers are preparing to travel the country explaining the nitty-gritty of the coalition’s proposed budget to local populations as part of its pre-election strategy.
The first of a series of “budget roadshows” is due to be rolled out in Lisbon next month.
