Prices would increase with any VAT

Prices would increase with any VAT
Prices would increase with any VAT
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After returning 21 percent this year. value added tax (VAT) rate (a preferential 9% VAT was applied to catering and cultural sectors, which were particularly affected by COVID-19), small catering businesses were forced to take various measures: some shorten the working hours of cafes and restaurants, others reduce the number of employees, others raises the prices of meals.
“Anykšta” asked residents of Anykšta: have you felt the rising prices? How do you react to that? Maybe you don’t go to cafes anymore, you choose cheaper meals?

Kęstutis JACUNSKAS, director of the Anykščiai Primary Health Care Center:
“I’m not a frequent visitor to cafes, but I go periodically, I can say that the prices are rising not drastically, but it’s hard for me to say how much they are rising.” It’s not like I would refuse to have a coffee or a meal in a cafe because of the increased prices.
Everything becomes more expensive proportionally, and the prices in stores have risen.
As for VAT relief, this is another matter. Let’s say, also with VAT on hotels – if there is an event in the city, the prices are raised, and that’s it. I think that VAT does not affect what prices the market dictates, it raises them. And without VAT, the state will not collect taxes, so I am in favor of a higher VAT. And they will take as much as possible from the client.

The article is in Lithuanian

Tags: Prices increase VAT

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