Moscow proposed reducing or eliminating VAT for public catering

The Moscow authorities have proposed to the Russian government to reduce or cancel VAT for restaurants, reports RIA Novosti with reference to Vladimir Yefimov, Deputy Mayor for Economic Policy and Property and Land Relations. According to him, the Ministry of Economic Development supported this initiative.

“We have approached the federal government with a proposal to reduce or completely abolish VAT for the restaurant business, which will significantly reduce the burden on enterprises and help them overcome this difficult period,” the deputy mayor said. For what period it is proposed to introduce a measure of support, is not specified.

Efimov also called the restaurant business one of the sectors most affected by the coronavirus epidemic. In total, during the pandemic, the Moscow government approved five anti-crisis packages totaling about 90 billion rubles, the agency notes.

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In 2020, more than 200 restaurants and cafes closed in the center of the capital, according to data from the international consulting company JLL. This is 35% more than in 2019. In total, 455 organizations in the center of Moscow did not survive the restrictions.

The restaurant business has suffered more than others from the coronacrisis and received relief on insurance premiums and all taxes, but not on VAT. Since January 22, has been relaxed the regime of restrictions for educational institutions, cinemas and museums in Moscow. Restrictions on the work of bars and restaurants at night are upheld.