The Algarve's PS deputy Miguel Freitas today considered that the reinstatement of the minimum VAT rate in catering, a project that the socialists are going to vote on in Parliament, constitutes «the only way to make viable one of the main sectors of the Algarve's economy, which has been drastically penalized since the increase decided by the Government».
Miguel Freitas, signatory of the PS's draft resolution that proposes to reduce the rate to the previous 13%, underlines the dramatic effect of the aforementioned increase in catering, particularly in the Algarve, where the sector represents one of the anchor activities of the regional economy, significantly contributing to the preservation of employment.
«The Algarve, where unemployment currently reaches rates of around 20%, has been one of the regions most penalized by this measure, with dramatic effects on the social and business fabric. Therefore, it is hoped that the Government will correct the error which was to increase the VAT rate to 23%, in order to prevent the sector from facing an irreversible crisis in the very short term», stresses the parliamentarian and socialist leader.
The draft resolution delivered by the PS last Friday, in Parliament, recommends the reinstatement of the VAT rate on the provision of food and beverage services, taking into account the effects generated by the increase decided by the Government, namely the drop in the consumption of households, cascading bankruptcies and declining tax revenues.
The Socialists point out that, although the forecasts of the State Budget/2012 pointed to an increase in VAT revenue of 13,6%, a value revised downwards to 11,6% in the Rectification Budget, at the end of the first four months of the year, the revenue VAT is below 3,5% of the amount collected in the same period in 2011, with strong indicators that the effect of revenue recovery will fall far short of the estimated target.
Sustaining the fears of associations in the sector and other economic and social agents, who have been warning of the possibility of insolvency and closure of thousands of catering companies, especially after the recent VAT settlement, the PS alerts to AHRESP's forecasts, which estimates a number of jobs lost in excess of 23 thousand, as a direct consequence of the increase in VAT, a figure that could reach 47 thousand by the end of 2012.
PS parliamentarians also underline the latest figures from INE, which point to the destruction, in the last quarter of this year, of about 15900 net jobs in the accommodation and catering sector compared to the last quarter of last year, with 33000 having been destroyed in a space. of one year.
Although they consider that it is no longer possible to recover companies and destroyed jobs, socialist deputies argue that “the Government still has time to partially correct the gross error it made by approving the VAT increase from 13% to 23% in the restoration ”, despite protests and warnings from all political and economic actors, with a vision of the Portuguese economy “much more realistic and less ideological than the Government”.
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