Cut VAT to 7% for bars and restaurants as COVID cases rise, PN says

PN deputy leader Robert Arrigo said the government’s wage supplement extension should not be stopped before March 2022

The Nationalist Party has said the government should reduce VAT for bars and restaurants to 7% in a bid to alleviate pressures for the COVID-hit tourism and hospitality sectors.

With the spread of the Omicron variant of COVID-19, fears of lockdowns and an exponential rise in coronavirus infections have led to hundreds of flights being cancelled in the first three months of 2022.

PN deputy leader Robert Arrigo also said the government’s wage supplement extension should not be stopped before March 2022.

Earlier this month, Prime Minister Robert Abela announced an extension of the scheme until January, but it remains to be seen whether there will be a further extension.

Arrigo also said Malta Tourism Authority licences should be scrapped for the time being. “Government should immediately intervene as promised with regards to the rising prices of heating oil, that increased by 8% from November, Arrigo added.

He called on the MTA to channel spending on a marketing plan for the country and invest in tourism sectors that are currently shuttered. “The PN believes that if we truly want to save the sector in such a difficult period, the government should take note of those proposals and implement them as soon as possible,” Arrigo said.