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National program to save pubs. Lower taxes and a legal tip for the waiter

The current situation in gastronomy is critical, say those who do business in this field. Revenues levied on spring quarantine have not returned to their original values, and the advent of the second wave of the epidemic has once again driven customers from restaurants, bars and canteens.

The association of small and medium-sized enterprises asked the state for help for restaurants. Together with the Czech Association of Breweries and Malthouses, it proposed a National Program for Gastronomy, where there are five long-term and four short-term measures that would help the sector.

The rescue for pubs is to be, for example, the extension of the Antivirus program, a marketing campaign, the legalization of tips and the reduction of VAT by the end of next year on catering services to five percent.

Without state aid, 40,000 jobs are in danger of being lost, the association said.

According to an earlier estimate, pubs and restaurants lost 30 billion crowns in sales by the end of July this year. Up to 30 percent evaluate the possible drop in sales caused by the current shorter opening hours, when pubs and restaurants have to close at 22:00. The association is trying to enforce the shift of the closing time to 23:00.

According to data from the Czech Statistical Office, the net turnover of the hospitality and restaurant sector in 2018 was 143.4 billion crowns.

Reducing VAT to five percent for catering services by the end of next year could bring the sector five to eight billion crowns. A legal tip should be an employee’s income, it would not pay taxes or social security contributions. According to the Platy.cz portal, the waiter earns on average between CZK 15,677 and CZK 32,759 per month, depending on the region and employer.

According to the association, the worst situation is in Prague and Karlovy Vary, but large declines in sales were also recorded in the South Moravian, South Bohemian and Moravian-Silesian regions.

The year-on-year decline in public catering revenues could reach 60 billion crowns this year.

However, according to the catastrophic scenario, it could be up to 80 billion crowns. The most affected are bars and clubs, locally the biggest decline is recorded in Prague, added on Monday the published analysis of the company Data Servis for the Association of Hotels and Restaurants of the Czech Republic.

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