One of the organizers of the protest in Lithuania, Vytautas Gustas, the manager of Kaunas hotel “Daugirdas”, said that the value added tax (VAT) rate in the Baltic countries is higher than in other European countries.
“Since, by analogy, VAT has risen in Estonia, Latvia, and Lithuania, we are striving for it to be the same as it is in all of Europe, because out of 27 countries, in 21 it is less than 10 percent, and in our country it is 21 percent. it’s that 10 percent. gave a lot to our finances and we did not accumulate bacon during the whole summer, and the winter season is waiting,” V. Gustas told BNS.
According to him, representatives of restaurants and hotels will gather not only in the capital of Lithuania, but also in Kaunas and smaller towns.
According to V. Gust, during the protest, there will be a minute of silence in honor of the country’s restaurants and hotels, and in addition, a recording will be played in all restaurants and cafes at that time, which will announce the current situation.
“We will have participants with tables and callas tied with a black ribbon. Mourning (time for restaurants and hotels – BNS), we’re almost at the last dinner, because it’s a pity, but our colleagues are already closing, big ones, we’re still a bitch we are suffering, but the regions are already very bad there. (…) For ten minutes, like a minute of silence at the grave, we will pay our respects in a way (BNS)”, said V. Gustas.
In Estonia, where the public catering and accommodation sector strike will take place for the first time in history, service in all restaurants will be stopped for 20 minutes.
In this country, the government decided in September to introduce a so-called defense tax consisting of three components – if the plan is approved by the parliament, 2% from 2025. points up to 24 percent. value added tax (VAT) will increase, and from 2026 by another 2 points to 24%. – personal income tax rate (next year it will be 22%).
In addition, from 2026, the profit tax would be increased by another 2 percent. up to 24 percent (from next year it will grow to 22 percent). 2 percent would also be introduced in 2026. rate for reinvested profit, which is currently not taxed in Estonia.
According to the data of the State Data Agency, the turnover of restaurants, cafes and other catering companies in Lithuania in 8 months reached 1.056 billion. euros (without VAT) and was 7.3 percent. lower than last year.
From January of this year, the standard 21% tax applies again to Lithuanian catering establishments. VAT rate. From July 2021, 9% was valid as aid to businesses affected by the pandemic. fee.
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#Lithuanian #restaurants #Latvians #Estonians #protest #rising #taxes #Business
**Interview with Vytautas Gustas, Manager of Kaunas Hotel “Daugirdas” and Organizer of the Baltic Restaurant and Café Protest**
**Interviewer:** Thank you for joining us today, Vytautas. Can you explain the main reasons behind the protest planned for October 31st across the Baltics?
**Vytautas Gustas:** Thank you for having me. The main driver of our protest is the high value added tax (VAT) rate in Estonia, Latvia, and Lithuania, which stands at 21%. This is significantly higher than in many other European countries, where the VAT rate for catering services is often below 10%. This discrepancy puts us at a competitive disadvantage and strains our financial sustainability.
**Interviewer:** How do you think lowering the VAT would impact the hospitality sector in your region?
**Vytautas Gustas:** A reduction in VAT would provide us with much-needed financial relief. This summer, we struggled to accumulate savings, and as we head into the winter season, the situation is looking even bleaker. Lowering the VAT, similar to what we see in 21 out of 27 European countries, would enable us to invest more in our businesses, improve services, and ultimately keep our doors open.
**Interviewer:** I understand that the protest will include a moment of silence. Can you tell us what that signifies?
**Vytautas Gustas:** Yes, during the protest, we will observe a minute of silence in honor of the restaurants and hotels that are facing closure due to these economic pressures. We will have participants standing with tables and black ribbons, symbolizing mourning for our industry. This is not just a stoppage; it’s a tribute to our colleagues who have already shut down and a call to the government to take action before we suffer the same fate.
**Interviewer:** What activities can we expect during the protest?
**Vytautas Gustas:** In addition to the minute of silence, we will play a recording in all participating restaurants and cafés to inform customers about our plight. The participation will extend beyond the capital; we’re mobilizing in Kaunas and smaller towns as well. It’s vital that we show a united front across the entire region.
**Interviewer:** This will be a historic strike in Estonia as well, with restaurants stopping service for a short period. How is that being organized?
**Vytautas Gustas:** Yes, it’s a significant moment for Estonia as service in all restaurants will pause for 20 minutes. It’s a coordinated effort that demonstrates the collective frustration and urgency of our message. We need the governments to recognize how critical this situation is for our industry and for the livelihoods dependents on it.
**Interviewer:** Thank you, Vytautas, for sharing your insights. We hope that your efforts lead to positive changes for the hospitality industry.
**Vytautas Gustas:** Thank you for the opportunity to speak. Together, we can make a difference.
