BUSINESS

VAT hike has shut down restaurants

By Dimitra Manifava

The food catering sector has been suffering in the last 12 months due to the increase in value-added tax to 23 percent, as data released on Wednesday by the association of organized food catering chains (SEPOA) shows turnover declined by a disappointing 40 percent in the full year since the application of the increased taxation.

In the 12-month period, turnover contracted from 3 billion euros to just 1.8 billion, while some 4,000 enterprise have shut down and about 30,000 employees have lost their jobs.

SEPOA is once again asking for the immediate reduction of the VAT rate to 9 percent, so that the sector?s enterprises can become viable again and to avoid the loss of more jobs, while increasing state revenues.

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