One may find the title of the open letter to Kyriakos Mitsotakis and Messrs. Staikouras and Georgiadis somewhat dramatized and exaggerated, but the report shows that «Focus, Zero Hour!» reflects the reality for many small businesses in the sector, as a result of government choices and distortions over many years.
What do the entrepreneurs of the «Circle of Catering Professionals» blame the government for?;
► First, that while he kept them closed for many months, forced them to take out loans as part of the support package instead of 100% subsidies. It should be noted that refundable advances 1,2,3 were exclusively loans and 4, 5, and 6 were 50% loan and 50% subsidy, provided that certain conditions are met. In other words, every business, in order to be financially supported to cope with the enormous duration lockdown, she had to take on debt.
► Second, that while he kept them closed for many months, does not exempt their owners from the business tax for the years 2020 and 2021, that is, a sum of €1,300.
► Thirdly, while restaurants are operating under restrictions (music, quotas, customer distancing, etc.), it has not yet been clarified whether businesses will continue to be exempt from paying rent for the property they lease for the months of July and August and whether they will be able to keep employees on furlough.
► Fourthly, although there was an announcement that start-up capital equal to 7% of 2019 turnover would be provided, this was ultimately distributed to very few companies that met a series of «difficult» criteria. According to information, 1,700 of the total 87,000 catering businesses nationwide received this specific aid.
► Fifth, while the industry, and especially those businesses that do not have many outdoor seats, is struggling to stay alive, EFKA has already begun blocking business bank accounts for unpaid contributions.
The Professional Catering Association, citing the critical nature of the situation and the extent of the losses suffered by businesses during the pandemic, is calling for a court ruling, namely freezing of the enforcement of judgments against the companies concerned. It also calls for debt restructuring or even debt write-offs, many of which, such as municipal fees for sidewalk cafes, accumulated while businesses were closed.
This is what the entrepreneurs of the Catering Professionals Association say, who held a press conference at noon on Friday, July 23, at a café on Karytsi Square.
What is the government saying... unofficially?;
Officially, the government proclaims loudly that it has spent large sums of money to support the restaurant industry, a claim that is true to a certain extent. Coverage of some rents, part of the refunds will be given as subsidies, special purpose allowances to employees, and finally this restart fund, which of course is given through ESPA.
This is where his objections come in. Catering Professionals Circle. Why did subsidies have to be accompanied by loans, why were the amounts repayable so low for many companies, why were many left out, and why are debts not being settled?; Also, why do so few companies have access to this restart fund?;
The government has not provided clear answers to the above questions, beyond citing the limited availability of resources. Unofficially, however, government officials accuse restaurant owners of not receiving more money through refundable advances and of being cut off from the restart fund because they have been evading taxes all along. This is because they issued far fewer receipts than their actual turnover.
Is this true? Yes, it is true. Too many businesses, some to maximize their profits, some because they would otherwise not be viable, «cut» less than they sell. In many cases, this is done with the knowledge of customers who appreciate a nice treat or a hefty discount on their bill more than legitimate tax compliance. After all, Receipts from restaurants are not deductible anywhere.
On a social, human level, the implementation of this practice often creates warm and trusting customer-host relationships. There are many who have associated law-abiding catering businesses with cold, large spaces that do not rely on frequent and loyal customers but on passers-by. This factor certainly cannot make tax evasion an acceptable practice for the State.
So, is the state responsible for this situation? Of course it is. All governments were aware of the problem but failed to solve it, a bad practice that has been going on for decades.. The tavern owner who, with a pencil behind his ear, brings the order slip instead of a receipt at the end of the meal, and the bartender who charges half price for the second round of shots, are situations that are more or less familiar to all Greeks. Beyond more frequent inspections, if governments wanted to «break» these practices, they could have given tax incentives to customers to request all their receipts.
All this is, of course, known to government officials, who are now blaming restaurant owners for the inadequate support they are receiving. That is why they are doing it unofficially. In this war between the government and restaurant owners, it remains to be seen whether the government will have the political will to implement solutions that will keep businesses alive, and henceforth more law-abiding, while saving hundreds of thousands of jobs.
