ECONOMY

Reduced VAT may continue for food service

reduced-vat-may-continue-for-food-service

Among the key questions the government faces this year is whether to extend the reduction of the value-added tax in the food service sector.

The Finance Ministry’s decision will be determined mainly by market conditions, but it is considered likely that it will continue to grant a VAT rate of 13%, as opposed to the normal 24%, on a sector that has been among the hardest hit from the lockdowns.

The lower rate went into effect at the end of the first lockdown, last May, and will likely continue once the sector reopens this spring. The sector currently operates only through takeaway and delivery services.