CDU in favor of a further reduction in VAT for the hospitality industry
The CDU in Hamburg's parliament is calling on the red-green senate to campaign at federal level for the VAT rate in the catering sector to be maintained at seven percent. Restaurants, bars and cafés have already had to raise their prices significantly due to increased costs - which has also been felt by guests, according to a motion submitted by the parliamentary group on Thursday. "Another price increase will cause considerable damage to the entire industry and ultimately lead to an unknown number of insolvencies," it warns.
Against the backdrop of the budget crisis, the German government wants to phase out the crisis aid created for the industry, which was once particularly hard hit by the coronavirus pandemic, and return to the old VAT rate of 19% from January.
After the corona years, Hamburg's hospitality industry is just finding its way back to its old strength, said David Erkalp, parliamentary spokesperson for retail and tourism. "An entire industry that is recovering is being massively damaged by high cost pressure." Food and drink should not become a luxury good. "The ones who will suffer will be the innkeepers and guests, who will have to bear the costs deliberately increased by the traffic lights."
Erkalp said that the red-green coalition in Hamburg must campaign in Berlin to retain the reduced tax rate. "Instead, the decisions of the traffic lights are being referred to despondently. This behavior has absolutely nothing to do with responsible politics for Hamburg."
The CDU advocates for citizens to voice their support for maintaining the reduced VAT rate for the hospitality industry at a federal level, as another increase in taxes on food and drink could lead to increased costs for businesses and potentially contribute to numerous insolvencies. The reduced VAT rate is crucial for the hospitality industry in Hamburg, which is still recovering from the impacts of the coronavirus pandemic, as food and drink should not become a luxury good for its citizens and guests.
Source: www.dpa.com
