Measures against coronavirus, which have been in force in various forms for more than six months, endanger the existence of all people involved in catering and tourism, and the authorities have still not explained their plans for the survival of this sector, the Association of Entrepreneurs and Businessmen of Serbia announced.
The organization states that epidemiological measures read a branch of the economy “pushing into a cocoon”, that their work is practically impossible, and that no obligation has been stopped or reduced.
They also suggest that, unlike the general economic measures adopted in March and June, earmarked funds be determined for certain branches of the economy, following the example of other countries from Europe and the world.
“We know that people’s health is the most important and that human life is priceless. But the people employed in this area also value their lives, as well as the lives of their families. That is why we ask the question – how exactly are caterers designed to survive? Is there a plan?,” a program and package of measures that will help those who pay all their obligations regularly every year, fill the budget and finance the public sector to survive this period, and why not, the statement added.
It is also stated that the World Bank and the IMF recognized tourism, catering and transport as the most endangered and most vulnerable branch of the economy, with an estimated loss of 910 billion in 2020, and that the Serbian Minister said that the loss in that sector was for the first five months 300 million euros, with a forecast that by the end of the year it will reach one billion euros.
“These data indicate that the fate of over 100,000 workers employed in the tourism and catering sector will be uncertain, with a forecast of mass layoffs, due to the inability of employers to provide them with the right to work and earnings in the given circumstances,” the Association believes.
Therefore, the caterer’s proposal is that the Ministry of Trade, Tourism and Transport, in cooperation with the Ministry of Finance, in order to protect and survive the profession, adopt the following measures:
At the national level:
• Direct participation of our representatives in meetings where decisions are closely related to the hospitality sector.
• Payment of minimum wages until the normalization of business with the write-off of taxes and contributions for the entire period.
• Additional subsidy of 100 eur / m2 of premises for those who are prevented from working by the measures
• Reduction of VAT from 20% to 5% in the next 3 years and then to 10% as a permanent tax rate
• Calculation of future levies according to the proportional system, ie reduced duties by as much as it is impossible to generate income (state of emergency, limitation of working hours and allowed number of guests)
At the level of local governments
• Reduction of lease of public areas and local taxes to 20% of the existing decisions, and for those who are completely unable to work, provide a write-off of 100%
• Reduction of local levies, company fees, utilities, garbage, etc.
• Abolition of the tax on SOKOJ clubs and nightclubs, and a 75% reduction to all other caterers.
• Abolition of new parafiscal levies (such as eco-tax)
“We call on the authorities to react urgently and to immediately lift all restrictive measures or to provide the necessary assistance to all those who are prevented from working by the measures until the normalization of business,” the statement concludes.
The appeal was signed by the Association “Protector of Entrepreneurs and Businessmen of Serbia”, the Association of Independent Caterers Kragujevac, the Association of Caterers Novi Sad, the Association of Caterers Nis, the General Association of Entrepreneurs Kula, the Association of Night Bars and Clubs (NOB), the Association of Caterers Arandjelovac and the Association of Variety and Event Industry, Nova Ekonomija reports.
