18 companies in Serbia will receive state aid for night bars and clubs

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18 companies that have fulfilled the conditions prescribed by the Decree of the Government of Serbia will receive help from the state, which is intended for night bars and clubs, Nova ekonomija writes.

The president of the Association of night bars and clubs, Misa Relic, said that it would cover about 40 night clubs. The total assistance to night bars and clubs will amount to 305 thousand euros, and the maximum amount that can be awarded per business entity is 36,000 euros in dinars at the middle exchange rate of the National Bank of Serbia on the day the Decree enters into force, the Ministry of Trade and Tourism said.

At the end of May, the Serbian Government passed a decree on direct and non-refundable assistance to bars and nightclubs affected by the corona crisis.

In other news, in June, the State Aid Control Commission suspended an initial proposal for financial support to nightclubs and clubs, saying the Serbian government’s proposal was “selective”, could lead to distortions of competition, and required total funding for that purpose.

According to the conclusion of the Government, the amount of funds realized by night bars and night clubs, which meet the conditions prescribed by the Regulation, is six percent of the annual turnover on which value added tax is paid, for the period from April 1, 2019 to March 31, 2020.

The Ministry of Trade expects the payment of aid next week from July 26 to 30.

Relic told Nova ekonomija that nightclubs and bars will not be able to pay the debts to the state that were accumulated during the business ban with the money from this help.

“On the other hand, since we do not exist in the system, we do not have a separate business code, I am aware that this was an impossible mission at the very beginning and that this aid was a great success,” he said.

When asked how far the process of obtaining the code “night bars and clubs” in order to differentiate catering facilities, Relic said that he hopes for a solution before November.

“The Minister of Finance, Sinisa Mali, promised at the last meeting that he would personally work to resolve this, so we have to keep his word. We will certainly give our proposal for differentiation, which we are working on, and we hope for a solution before November so that something like this would never happen to us again,” he said, Nova Ekonomija reports.