Caterers in Estonia, Latvia and Lithuania are planning to temporarily suspend their operations on Thursday, the 31st of October, to protest tax hikes affecting the hospitality industry, on Monday, the 28th of October, reports Estonian media ERR.
In Estonia, the protest will take place from 12.30 to 12.40 p.m., during which dozens of restaurants, cafés and accommodation establishments will stop working. Customers will not be served during this time.
The action was initiated by the Estonian Hotel and Restaurant Association, which claims that Estonian VAT is already one of the highest in Europe.
From 2025, the VAT rate for the hospitality sector in Estonia will be 22% and will apply to almost all transactions.
According to the Estonian Hotels and Restaurants Association, only Norway and Denmark have a higher VAT rate of 25%.
The Association claims that in Estonia, eating in a restaurant or café is becoming a luxury. It also argues that price increases are damaging the hospitality and tourism industry.
The Estonian Hotel and Restaurant Association stated that “the protest action is aimed at the well-being of our people and underlines the need to maintain a decent standard of living” and highlighted the need for “a decent standard of living for people”, stating that everyday activities such as dining out or relaxing in local establishments “must not become unaffordable luxuries”.