The accusative action “Go on with the bread!” led by the Estonian Hotel and Restaurant Association (EHRL) On October 31, from 12:30 to 12:40, work will stop in cafes, restaurants and accommodation facilities across Estonia to draw attention to the government’s overly strong tax policy.
“We cannot fundamentally accept that an Estonian pays more taxes than other European residents, and that leisure opportunities are becoming too expensive for most of them. We cannot stand by and watch how, instead of increasing exports and encouraging entrepreneurship, the state only raises taxes and does not contribute to the recovery of the economy?” said the CEO of EHRL Killu Maidla.
According to him, they want “Continue bread!” both for the people of Estonia and for the economy of the country as a whole, which is directly related to the perspective of the welfare of society and the collection of state taxes.
In addition, within the framework of the work, it is requested to draw attention to the fact that Estonian tourism has not recovered from the crises and that the country is giving up tourism income earnings through the deterioration of the tax environment, surrendering it to other countries. . “In times of crisis, the supply and accommodation sector needs a stable economic environment and the desire to follow “bread! ” gives the impression that we remember an important sector in our daily life and gives them the opportunity to develop and offer services at a competitive price. This supports not only the region, but the competitiveness of the Estonian state as a whole,” said Maidla.
The accommodation VAT is currently the European average, but with an increase to 13 percent from next year Estonia will be one of the most expensive accommodation tax countries in Europe. The VAT in the food sector has already increased by two percent this year and will increase by the same amount in the next year. With a VAT rate of 24 percent, the Estonian restaurant sector is taxed twice as much as the European average.
“The hospitality sector is looking for a competitive economic environment, and tax competition is an important part of it. One solution might be to consider a system similar to the rest of Europe, where a lower VAT rate is given to supply services to support a labour-intensive and low-profit sector ,” said the CEO of EHRL.
The expected tax increases next year will increase the ever-increasing cost of living, and the people of Estonia will suffer because of this. The decline in purchasing power is obvious and has a terrible impact not only on companies, but above all on the people themselves. The department is asking everyone who feels the negative impact of the government’s tax decisions to join the protest campaign.
The hosting sector prosecution activities are taking place at the same time in the three Baltic countries. Latvia and Lithuania have not adopted a general tax increase, and the VAT on accommodation remains unchanged – it is 12 percent in Latvia and nine percent in Lithuania. However, catering services in these countries, such as Estonia, are taxed higher than elsewhere in Europe, and due to the increase in raw material and labor costs, they are also concerned about keeping increase the competitiveness of their services. In addition to the work stoppage, Latvian and Lithuanian entrepreneurs will also organize a protest in front of government buildings. It is important to remember that the hospitality sector in Estonia has not organized protest actions before – this is the first time they have shown a common feeling against what is happening in the country.
