Adega S. Nicolau in the reopening of Porto restaurants after Covid-19

Restaurants call for reductions in IVA to compensate rising energy costs

Situation has become “unsustainable”, warn owners

Restaurant owners and businesspeople are calling for reductions in IVA to compensate for rising energy costs.

Explain reports, they say the situation has become completely unsustainable.

Businesses are having to deal with massive increases to energy bills – but also the cost of their ‘raw materials’ are rising.

Contracts with suppliers are in jeopardy; the word “dismissals” is already being heard, says SIC, as businesses are simply becoming unviable.

Add to this fears that clients themselves will limit the amount of time and money spend in restaurants, and this is another ‘storm’ brewing on the grim economic horizon.

Says SIC, economy minister António Costa Silva has told RTP3 that the prices of gas could double in 2023 – meaning that costs overall over the last couple of years have gone up “five or six times” –  at a moment when the world is already living through what he called a “real hunt for gas”.

The government’s hopes, said the minister, are pinned on encouraging the creation of a kind of Atlantic hub in Sines, “to ensure repercussions and disruptions to the market are minimised”. This ‘hub’ would also involve the gas pipeline Portugal is pushing for so fervently taking gas from Sines into Northern Europe, through France.

Germany and Spain are all for the plan, but this far France’s President Macron is blocking it.

natasha.donn@portugalresident.com