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New VAT rules

Lower sales tax has not created more restaurant jobs

Published onsdag 4 april 2012 kl 17.19
Lower VAT on restaurant food has lead to growth in sales, but not more jobs. Photo: Scanpix

The government's decision to halve the VAT rate on restaurant food from the beginning of the year has led to growth in sales in the industry but has not, as was expected, created more jobs.

In fact, unemployment in the restaurant industry has since increased. On the 1st of April the trade union Hotell- och restaurangfacket raised the fee for the unemployment insurance in order to be able to deal with the large number of unemployed union members.

"We haven't seen any effects of the VAT reduction", says Karin Petterson, who is in charge of the unemployment benefit payouts from the trade union.

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