December 9, 2021

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Restaurant establishments are at risk of mass layoffs and bankruptcy

Restaurant establishments are at risk of mass layoffs and bankruptcy

Bratislava, Oct 20 (TASR) – The gastrointestinal tract is one of the most affected by coronary crises and most operations are still lost. Due to the current situation, some companies have remained closed to save costs. With regard to the collapse of many restaurant facilities, there is also a risk of massive layoffs, as representatives of the Federation of Trade Unions and Associations of Employers (AZZZ) and the Slovak Gastronomy Alliance warned at a press conference on Wednesday.

After two waves of the novel coronavirus epidemic, some companies have not been able to create sufficient financial reserves and their poor financial position is also negatively affected by the COVID mechanism. In practice, this means a significant reduction or abolition of paid aid, which entrepreneurs still rely on. “This sector is heavily burdened with past expenditures,” said President AZZZ Tomáš Malatinsk. According to Malatinsky, one possibility to help is to reduce the value-added tax (VAT). He said that although VAT has been reduced in other countries, their overall collection has increased.

In addition to the VAT reduction, the head of the Slovak Gastronomy Alliance, William Pavlovsky, will also welcome back Action 3B of the Ministry of Labour, Social Affairs and Family to support business. At the same time, he says, the digestive system is understaffed after the second wave of the epidemic. “What we have left is gold we have to strive to preserve.” Pavlovsky claims. However, the biggest costs for companies are employees, which makes the equipment sector specific. However, companies are already facing the third wave of the epidemic, which is restricting their business, especially in the burgundy and black areas.

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Pavlovsky denied that the proposal to reduce value-added tax will not win the support of politicians, although this was not envisaged in the draft state budget for next year. According to him, Finance Minister Igor Matovic (OĽANO) this idea “You didn’t get off the table” In principle, Prime Minister Eduard Heger (OĽANO) and Economy Minister Richard Sollick (SaS) are allegedly agreeing to this aid for restaurants and other establishments.

While Labor, Social Affairs and Family Minister Milan Krajniak (We Are Family) acknowledged potential changes in pandemic support for businesses after the government meeting, there is no agreement or support for a value-added tax cut for gastronomy by Prime Minister Eduard Heger, according to spokeswoman Jubica Janikova.

Malatinsk noted that there are currently about 160,000 people working in the gastroenterology sector, and besides service facilities, this is probably more than 200,000 people. Therefore, according to him, the same attention should be paid to such operations as, for example, Volkswagen Bratislava and US Steel Košice.