Isle of Man pubs, bars, restaurants and hotels are appealing to the government for more support.
The Licensed Victualists Association (LVA) said businesses faced a “catastrophic” 20% value-added tax and a rate that would “disproportionately burden” low-wage workers.
He said the government was supportive but needed to consider other demands on finances. ”
The call came after more than 70 companies met on Thursday.
LVA called on ministers to “listen carefully” to concerns in this area and “address the island's issues”.
“It is unacceptable that people earning the proposed minimum wage of £11.45 an hour would be taxed at the new top rate of 22%,” the group said.
He also said National Insurance was a “punitive tax on employment, oppressing both employers and employees”.
It said the island's low NI and tax allowances were “the main cause of staffing issues” facing the island.
“Ineffective plan”
National Value Added Tax data is used to calculate the proportion of indirect tax revenue that the Island receives from the UK under the Final Expenditure Revenue Sharing Agreement.
The LVA also criticized the government's loan scheme as being “too complex or difficult to access for struggling businesses”, and said the island's minimum wage range would be in line with the UK to make it easier to recruit and train young workers. asked to match.
It also calls for lower alcohol taxes on locally brewed beer.
The group said in a statement: “It is essential that governments take note of the expertise of industry players.
“Rather than implementing plans that are cost-prohibitive and ineffective, we must respond to the real needs of ourselves and our employees.”
In response, the government said it understands that parts of the sector are “going through difficult times” and recognizes that the sector “makes an important contribution to the overall economy”. Ta.
“However, the solutions considered need to be appropriate and take into account other demands on finances and pressures being felt across the community,” it said.
Finance ministers and enterprise ministers would welcome meetings with sector representatives “to ensure open dialogue and clear understanding and, importantly, listen to concerns”.
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