PN renews call for catering VAT to be slashed from 18% to 7%

Restaurants need "support to remain sustainable' - Alex Borg

The Nationalist Party has reiterated its proposal to reduce the VAT rate for catering establishments from 18 per cent to seven percent.

Following a pre-budget meeting with the Association of Catering Establishments, the Opposition leader explained that the catering industry “currently requires support to remain sustainable”.

The PN had tabled similar proposals in the past, primarily as a post-pandemic recovery plan for the tourism industry.

Restaurant owners have long lobbied for their VAT rate to be slashed by more than half, bringing it at part with the rate paid by hotels and tourist accommodation.

In a statement on Thursday, the PN said the restaurant and catering sector contributes significantly to Malta’s economy which is why the party wants to introduce measures to strengthen it “at a time when many operators in the sector are facing difficulties”.

Borg said Malta has the opportunity to enhance the reputation of this sector while opening up a new tourism niche based on gastronomy.

ACE told the PN that the challenges faced by the catering industry “must be addressed as soon as possible”.

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