“1 cent lunch in schools is the scam of the year, ‘We want VAT like in Europe!’

by times news cr

2024-04-19 12:27:46

Several dozen participants came to the protest, they gathered near the Government.

Those gathered had placards with the words “1 cent school lunch is the scam of the year”, “Abolish VAT on children’s meals”. School canteens are part of the educational process!”, “Bankruptcy = uncollected taxes”, “We want VAT like in Europe!”, “27% taxes in the price of a Zeppelin”, “We want to spread light. No shadow”, “21% VAT kicks the lying person”, “Low taxes high performance (Low taxes, high performance – lit.)”, “No business no cry (No business, no cry – lit.)”.

As Eurika Turonienė, president of the Association of Food Producers of Educational Institutions, stated on the eve of the Eltai protest, the main goal of the protest is to ask the Government to reduce VAT for the catering sector.

“The main goal of the protest is to once again ask the Government and members of the Seimas to reduce VAT on catering services. I especially emphasize the most socially sensitive sector, that is, school canteens, kindergartens, nursing homes for the elderly, for which the final price for meals has now risen abnormally”, said E. Turonienė.

“We would like to shame the Government for not taking into account the forecasts of analysts when we asked them not to do what they thought. (…) VAT is collected less than predicted, and according to our forecasts, the budget will experience a bigger loss at the end of the year than it would have experienced if it had not reduced VAT”, she noted.

According to E. Turonienė, the Government will be given a letter from all associations of the catering sector regarding the lower amount of VAT. According to her, the protest will take place between Kudirka and Cathedral squares in the capital, and up to 300 people will be able to gather.

“The protest will take place from 11 a.m. to 1 p.m. between Kudirka and Cathedral Squares. We’ve got permission for gatherings of up to 300 people and food vans will also be coming. We will have forks, they are not farmers’ forks, but we hope that attention will be paid to them and people, small businesses will be heard and Lithuania will not be destroyed,” said the head of the Association of Food Producers of Educational Institutions.

Food is distributed, parliamentarians participate

During the protest, catering establishments such as Meatbusters and Chili Pizza distributed food and tea to people. Parliamentarians also participated in the event: “peasant” Robert Šarknickas, social democrat Kęstutis Vilkauskas, liberal Andrius Bagdonas. Evalda Šiškauskienė, head of the Lithuanian Hotel and Restaurant Association (LVRA), was also at the protest.

9 percent VAT for the catering sector – until 2027.

E. Turonienė said during the protest that the preferential 9% The VAT rate for the catering sector should be applied until 2027.

“I can talk about the most socially sensitive sector, I want to talk about it, the VAT for feeding children, kindergartens, schools, nursing homes for the elderly must be reduced. (…) I would think that no less than until 2027. it must be, because by that time the business would have already paid off the “Sodra” deferrals, which were given during the pandemic period, and would have recovered at least somewhat,” the president of the Association of Food Producers of Educational Institutions told reporters.

At that time, another participant of the protest, Laimutė Juršėnienė, said that due to the return of 21 percent. Half of the VAT rate children no longer eat school meals.

“We are fighting for the return of 9 percent. VAT, so that children can eat quality food. (…) Now half of the children do not eat because it is expensive. (…) We doubt that the Government will listen, but we are asking for help for business,” she said.

Finally, the campaign participant Karolis emphasized that 9 percent The VAT rate for the catering sector should not be called preferential, as it is in most European Union (EU) countries.

“I wouldn’t call it 9 percent. preferential tax, I would call it standard, because it is the case in most EU countries”, he said.

ELTA reminds that the preferential 9% has ceased to be valid since the new year. VAT rate for catering services provided by restaurants, cafes and similar catering establishments and for takeaway food.

The representative of the Ministry of Finance, Irmantas Mikulėnas, has asserted that the expiring VAT relief for the catering sector will bring an additional 140 million to the state and municipal budgets. euros.

Meanwhile, the head of the Lithuanian Hotel and Restaurant Association (LVRA) Evalda Šiškauskienė has stated to Eltai that if the minimum monthly wage (MMA) rises to 924 euros from this year, and if the sector applies standard VAT, prices could increase by 22 percent.

in 2022 The government proposed to apply VAT relief to catering establishments until 2023. in the middle of the year, but the Seimas decided that it will be valid for the whole year. This issue caused a dispute in the ruling conservative party, as the then chairman of the Seimas Budget and Finance Committee, Mykolas Majauskas, did not agree with the Government’s position. Finally, he was expelled from the party, left the faction, and finally – the Seimas.

Last year, the members of the Democratic faction of the parliament “Vardan Lietuvos” proposed to apply a preferential VAT rate of 9 percent to the catering services provided by restaurants, cafes and similar catering establishments indefinitely. After the Seimas rejected the proposal, the “peasants” initiated an alternative – a preferential 9 percent. Apply the VAT rate for another three years – 2024-2026. However, he was also not approved by the parliament.

2024-04-19 12:27:46

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