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Latvia's catering industry launches protest against tax policy

Xinhua News,RIGA
2020-05-26 12:51

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RIGA, May 25 (Xinhua) -- Latvia's restaurant association has launched a protest campaign against the tax policy implemented by the government, local media reported Monday.

The country's catering industry has long demanded a reduction of value added tax (VAT) rate but was rejected by the parliament.

Catering service providers from all over Latvia including food suppliers to schools, family cafes and lifestyle restaurants are invited to join the protest, local media said.

Lauris Aleksejevs, vice president of the association, said that protesters will bang pots and pans to remind politicians of their earlier promises, including a 5-percent reduction of VAT on hospitality services.

The association said the government had promised to reduce VAT in return for the conclusion of a general collective agreement, under which the hospitality services providers committed to raising wages and lowering their prices.

Since COVID-19 broke out in Latvia in March, the country's hospitality sector has suffered losses of 77 million euros, with 4,000 small and medium-sized enterprises and approximately 40,000 employees working in the sector directly affected.
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