Portugal’s Opposition Socialist Party (PS) leader, has promised to return the value-added tax (VAT) rate on the restaurant and catering industry to the lower rate of 13 percent if it wins the elections due to be held in 2015.
The tariff was increased from 13 percent to the headline rate of 23 percent at the beginning of 2012, and will rise to 23.25 percent in 2015 if the Government’s Strategic Budgetary Document (DEO) for 2015-2018 is adopted.
Seguro told industry representatives that the PS will reverse the rate hike to correct an injustice and to protect businesses and jobs. Opinion polls suggest that the party is poised to secure the most votes in the upcoming 2015 elections.
Meanwhile, the Portuguese association of hotels and restaurants (AHRESP) has launched an online petition that urges the current Government to restore the reduced rate to prevent further business closures and redundancies. Tourism currently contributes more than 15% of Portugal’s GDP and industry is an important source of employment in the country.
