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Additional Relief for Struggling Restaurants On the Way

The Icelandic government is promising additional relief subsidies for suffering businesses in the restaurant sector, RÚV reports. It is hoped that the measures—which include tax relief as well as extensions of existing subsidies—will be implemented within the next few days.

The announcement comes in the wake of tightened domestic restrictions as COVID cases soar in Iceland and authorities scramble to ensure that the health system does not become overwhelmed. As of midnight on Friday, the general gathering limit is now 10 people and bars and clubs will be closed. Events and performances will also not be permitted. The current regulations will be in effect until February 2.

See Also: Iceland Tightens Domestic COVID-19 Restrictions

Restaurant and bar owners have repeatedly requested stronger governmental support to help weather financial insecurities created by the pandemic. On Friday afternoon, the government announced that it intends to allow restaurants to postpone paying tax and social security contributions. Relief grants will be extended. These measures are expected to be implemented right after the weekend. Closure subsidies are also expected to be extended and special subsidies for restaurants in distress should also be available.

Þórdís Kolbrún Reykfjörð Gylfadóttir, who is acting Minister of Finance in the absence of Bjarni Benediktson, said that there isn’t much work left to be done on the proposal and she hopes that it will be on Monday’s parliamentary agenda. She noted that the relief measures come as a result of conversations with people in the events, tourism, restaurant, and cultural sectors.

“What we’re doing right now is primarily focused on restaurants,” she stated. “[…] But we need to be mindful of the economy as a whole remaining strong. As such, we need to be smart about directing this targeted support to those who really need it.” Þórdís Kolbrún estimated that the government would spend over ISK 1 billion [$7.78 million] on these measures.

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