Bundesrat: Bavaria demands permanent reduction in restaurant tax
Bavaria is making another attempt in the Bundesrat to retain the reduced VAT rate of seven percent for the catering industry. In the motion for the upcoming plenary session of the Bundesrat this Friday, the Munich state government justifies this with the "preservation of the competitiveness of the gastronomy and tourism industry in relation to neighboring countries".
In addition, the reduced VAT rate should not only apply to food, but also to drinks. This can be read in the document, which the Federal Council - like the other items on the agenda - has published in advance on its website.
The German government wants the VAT rate on food, which was reduced to 7% during the coronavirus pandemic, to rise again to 19% at the turn of the year. The Bavarian coalition of the CSU and the Free Voters had already submitted a package of 25 tax cuts to the Bundesrat in September, including the reduced restaurant tax.
The Federal Council is currently considering the proposal made by Bavaria in the Bundesrat, which advocates for a permanent reduction in the restaurant tax for the hospitality industry, aiming to maintain their competitiveness against neighboring countries. To further support this sector, Bavaria suggests extending the reduced VAT rate to drinks, beyond just food, as stated in the submitted document.
Source: www.dpa.com
