Just over a year ago, exactly in the month of May 2011, podíamos escuchar al presidente actual del gobierno en España, Mariano Rajoy, say this:
This week we are in the leading newspapers in Spain the headline:
Many of my readers and followers on social networks have moved me this week concerns about the consequence of this measure, denoting a huge concern by the hospitality industry por la noticia, since apparently it could be one of those chosen by the government for this “brutal” rise, which would mean an increase in tax pressure 10%, Passing the current reduced rate 8% the general type 18%.
VAT and Hosteleria
I really can not find meaning to this “ceremony of confusion” in which we are immersed and which is generating enormous uncertainty, in any way, It helps alleviate the negative climate as there is in the sector and the consumers themselves.
That is why I present below a picture that I made where I explain in graphic form and detailed the consequences that this measure, In my opinion, would cause in a sector that is suffering from a dramatic way this devastating economic crisis:
As can be seen in Table, the tax measure would lead to closure or realignment of the activity of thousands of bars and restaurants, would generate a decrease in tax revenue, that in no case would be offset by the increase in the rate, a notable increase in unemployment with all the social drama that entails, an increase of tax fraud caused by a more serious measure contrary to the very survival of many companies reaction and a flight of investment to other sectors or what is, a otros países.
It's not serious for strategic and vital to economic and social development sectors such as Spain are the hostelry and tourism, let us in just a few months promise a reduction in VAT, as it is already done in Europe, to raise an increase thereof in a 10% precisely to meet criteria requested by the European Commissions own, It's not serious!
We must not forget that the hotel is one of the few sectors along with tourism that can lead an economic recovery in Spain and are also generated genuine employment, only in restaurants, bars and cafes more than 1.400.000 people employed at this time.
This issue demands a profound reflection on the part of national authorities and a closer and more realistic view of the situation by the European authorities.
It would be a historical mistake that could ruin condemn one of the few leading sectors and world-class left us and is becoming the driving force of economic recovery.