Hotel and restaurant association warns of business tasks when raising VAT for dishes

Hotel and restaurant association warns of business tasks when raising VAT for dishes

wave of business tasks threatens: Restaurant association warns of tax increases

The Hotel and Restaurant Association Dehoga warns of a possible tax increase for dishes in restaurants. If the currently reduced VAT will be raised to 19 percent in the coming year, this could lead to a wave of business tasks. According to the DEHOGA general manager Ingrid Hartges, another 12,000 companies would have to close their business. Hartges described a tax increase as a disaster for the companies.

The Federal Government had reduced sales tax on food and catering services from 19 to seven percent in the course of Corona pandemic. This regulation was then extended by the end of 2023 due to the Ukraine War and the increased increased energy prices. However, it is currently planned that the reduced VAT will be raised to the regular sentence of 19 percent next year.

Ingrid Hartges demands that the tax reduction be retained and emphasizes that restaurateurs no longer have scope for price increases. Already during the pandemic, 36,000 taxable companies had to close in the industry. There are currently 186,000 providers with a total of 1.08 million employees and 900,000 mini -jobbers.

also Michael Hüther, director of the Institute of German Economy (IW), pleads for maintaining the reduced VAT rate. So far, the gastronomy has not recovered from the crises, and sales were still below the level of 2019. Hüther warns of the negative effects of a tax increase for consumers and restaurateurs.

The union food, enjoyment, restaurants (NGG) also speaks for an extension of the reduced VAT in order not to further heat inflation. The left-wing parliamentary group leader Dietmar Bartsch also advocates an extension in the current economic situation and indicates the impending loss of jobs and quality of life. In addition, a tax increase would also affect daycare centers and schools, which is considered anti -social.

The CDU/CSU parliamentary group had submitted a draft law to update the reduced tax rate in March, but it was rejected. According to the Federal Ministry of Finance, the state loses around 3.4 billion euros per year through the tax reduction per year. A decision on an extension must be made in the parliamentary process and could only be made after the tax estimate in November

The budget situation is currently very tense, so every measure must be checked particularly urgently, according to Katharina Beck, financial spokeswoman for the Greens. The opinion of the traffic light coalition on the topic will only be formed during the budget consultations from September.