Critics of the current VAT policy argue that the tax reduction fails to deliver on its promise of relief for the general public, effectively functioning as a subsidy for businesses rather than a benefit for diners. While the government framed the policy as a way to support both the industry and the citizens, the reality is that consumers are seeing little to no change in their final bills. This leads to public frustration, as the expected price drop is swallowed by businesses to cover their internal cost increases.
From an accountability perspective, skeptics point out that there is no mechanism to ensure that the tax savings are passed on to the customer. When prices remain high—or even continue to rise—despite a significant tax cut, it creates a perception of unfairness. Some observers argue that if the goal was to stimulate demand and help households cope with inflation, a more direct approach, such as targeted income tax adjustments or social benefits, would have been more effective than a blanket VAT reduction that businesses can simply absorb.
Furthermore, there is concern that such policies do not address the root causes of the industry's problems, such as structural inefficiencies or the broader inflationary environment. By focusing on tax cuts, the government may be avoiding more difficult conversations about how to support the sector without relying on public revenue. For the average person, the result is a continued high cost of living, leaving many to conclude that the policy has done little to improve their personal financial situation.