Association of Catering Establishments (ACE) has welcomed proposals to reduce VAT on restaurants and kiosks to 7%, while urging a broader, coordinated approach to reform within the sector.The association was reacting to recent statements by Alex Borg, who pledged that a future Nationalist Party government would implement the VAT reduction within its first 100 days in office.ACE described the measure as a long-standing priority, noting that it has been advocating for a reduced VAT rate for the catering industry for the past five years.At the same time, the association called for further discussions with the Opposition to better understand how the proposal would be implemented within the proposed timeframe.The industry body also pointed to ongoing consultations on the issue, stressing that any meaningful reform would require coordination with key institutions, including fiscal authorities such as the VAT Department and the Ministry for Finance.In this context, ACE said it agrees with recent remarks by Ian Borg, who highlighted the need for a holistic approach to reform, encompassing not only taxation but also licensing, compliance and operational structures within the sector.While supporting the VAT reduction, ACE expressed reservations about claims regarding its direct impact on consumers. The association reiterated that the measure is primarily intended to support businesses within the catering industry, with any benefits to consumers considered indirect.The association also urged stakeholders to avoid politicising the issue, calling instead for constructive dialogue between government, opposition and industry representatives.ACE President Michelle Muscat said the focus should remain on ensuring the long-term sustainability and competitiveness of the sector.The VAT debate comes at a time when Malta’s catering and hospitality industry continues to face rising operational costs and evolving regulatory requirements, with industry groups increasingly calling for structural reforms to support long-term growth.•