Vilnius extends 50 percent reduces property taxes for hotels
Vilnius City Municipality, in response to the consequences of the COVID-19 pandemic, decided to extend land lease relief of 50 % reduced property taxes for hotel services companies applicable from 1 July, to the end of this year.
This decision was approved on Wednesday, October 28 by the Capital City Council. This benefit will help accommodation providers to ensure the continuity of the hotel sector, the ability to maintain the existing service infrastructure, and preserve the jobs.
“As in the spring and autumn, during the second wave of the COVID-19 pandemic, we see the need for this funding to support and sustain the hotel sector, to preserve jobs, as hotel losses remain between 70% and 90%, not only during lock-down but also after lock-down.”, says Kasparas Adomaitis, Chairman of the Economic and Financial Committee of Vilnius City Municipality.
This benefit is granted only to the hotel services sector, taking into account that the municipality has already provided the subsequent support to the catering sector in Vilnius exempted from local fees for permits to trade or provide services in public places, provided free space for outdoor cafes. The estimation points out that the tax relief for the hotel sector would amount to about 290,000 euros.
According to the Lithuanian Hotel and Restaurant Association, the hospitality business will fight the consequences of the COVID-19 pandemic until next year, as disrupted foreign travel flows, uneventful events, and reintroduced travel restrictions prevent hotels and restaurants from returning to normal business conditions.
photo: Saulius Žiūros