The Latvian Hotels and Restaurants Association is willing to conclude a general collective agreement on the minimum wage for the employees working in the industry, if the finance ministry lowers the value added tax (VAT) rate on food services to 12%. The National Tripartite Cooperation Council, which brings together representatives of the government, entrepreneurs and trade unions, is expected to discuss VAT on food services. It probably can be lowered only on the condition that the caterers stop paying undeclared wages.
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