The rise in VAT on sugary drinks will not have any effect on the hotel industry, according to the Ministry of Finance, which thus responds to criticism from the sector, also reminding bars and restaurants that the tax can be deducted after the purchase of the product. The Government spokesperson and Minister of Finance, María Jesús Montero, explained yesterday that it affects sugary drinks, but only in the case of distribution, without altering that of restoration and “it has nothing to do with prices” in your cards.
The tax on sugary drinks, which has provoked many reactions from , but the Treasury responds to the hoteliers that when they buy the merchandise, the tax can be deducted later.
“They will have to pay 21%, but as until now they will deduct it,” they insist from the Treasury. The Government has decided to apply VAT only to distribution so as not to further punish the hospitality industry, which is already going through a very delicate moment, with a drop in sales of more than 50% and more than 85,000 establishments on the verge of bankruptcy.
Impact throughout the chain
Despite this, the entire food chain insists that there will be a clear impact on consumption. Mauricio García de Quevedo, general director of the Fiab food association, recalls in this sense that “it is a tax that is only for collection purposes and that does not serve to fight obesity. If VAT is increased, purchasing power falls and that too affects the hospitality industry.
Josep Puxeu, general director of the employers’ association for the soft drink industry, Anfabra, assures that after the approval of the tax on soft drinks in the hotel industry in Catalonia “the effect on consumption and collection has been nil”, also insisting that Contrary to what the Treasury defends, it will have an impact on prices in the hotel industry and will further punish the sector. Puxeu has criticized the punishment, without any scientific basis, of both sugary drinks and those that use sweeteners.
sales drop
The consulting firm PwC has prepared a study commissioned by the industry in which it ensures that the increase in pressure will cause a drop in sales, mainly in the distribution channel, of between 119 and 370 million euros. This would imply a reduction in the total Gross Added Value (GVA) of between 110 and 334 million euros. Anna Merino, Director of Strategy at PwC, assures that there will be “a loss of value for the entire agri-food chain”, but also admits that it will fundamentally affect the agricultural sector and the agri-food industry and not the hotel industry.
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