On October 31, hospitality professionals gathered in Vincas Kudirka Square in Vilnius, Lithuania, to voice their opposition to tax increases they consider a threat to their industry. The recent VAT increase to 21% has hit particularly hard on establishments that previously benefited from a reduced rate of 9%, which had been introduced to help offset the impact of COVID-19 closures. Protesters highlighted the difficulties in maintaining profitability, with revenues down by over 7% compared to the previous year.
The protest participants called on the government to reinstate the reduced VAT rate to support restaurants struggling with rising operating, labor, and supply costs. The current economic climate, coupled with the lasting effects of the pandemic, makes this tax increase particularly hard to bear for small businesses and their employees, sparking fears for their future.
