A legislative proposal drafted by the Party of Action and Solidary envisions the reduction of the VAT rate on accommodation services and on food products and drinks, except for alcoholic beverages, for business entities operating in the hospitality industry to 6%. The authors suggest implementing the new provisions as from October 1 this year, IPN reports.
According to the bill authors, the proposal was worked out following the multiple restrictions imposed on different activities where the providers suffered huge losses that resulted in reduced pays, fewer jobs or even bankruptcy.
In April, Parliament adopted an organic law providing that a VAT rate of 6% will be applied to the hospitality industry during the state of emergency and the public health emergency. The given law is to take effect in six months of the publication of the fiscal policy laws.
PAS MP Dumitru Alaiba said the law was published on May 21 and is to be applied starting with November 21. The PAS initiative is aimed at providing this concession to the hospitality industry earlier.
