Dehoga criticizes VAT increase in gastronomy
The German Hotel and Restaurant Association (Dehoga) in Rhineland-Palatinate has criticized the planned return to the higher VAT rate on food in the catering industry. According to Dehoga state president Gereon Haumann, it is a fatal mistake to "now hold the hospitality industry accountable and make it bleed! There will be 750 to 1000 business closures in Rhineland-Palatinate alone, and around 12,000 across Germany." Haumann added on Friday night that "prices will have to be increased, sales will fall". In the end, there will be "enormous job losses".
On Wednesday, the Federal Constitutional Court ruled that the use of coronavirus loans for climate projects was unconstitutional. The ruling tears a 60 billion euro hole in the financing of the federal government's climate projects. VAT on food in restaurants is to be raised again to 19 percent at the beginning of the year. According to information from the German Press Agency, this has been agreed by the coalition government. In order to relieve the gastronomy sector during the coronavirus crisis, VAT on food in restaurants and cafés was temporarily reduced from 19% to 7%.
Dehoga state president Haumann criticized the federal government for accepting "insolvencies, training and job losses in rural areas and the increase in the price of food in almost all areas of life" with the tax increase. Politicians are thus "taking an axe to the glue that holds society together: our public living rooms!" Dehoga regional managing director Anna Roeren-Bergs called for equal taxes for all meals despite the tight budget situation. Takeaway, supermarket or delivery food is only taxed at seven percent. "After corona and inflation, with immense cost increases in all relevant cost groups, the hospitality industry is no longer suitable as a cow that can be milked endlessly," warned Roeren-Bergs.
The Bundestag must consider the potential impact of increasing VAT on judgments regarding the hospitality industry's finances, as the rise could exacerbate job losses and business closures. Household budgets may also be affected due to the increased costs of dining out in restaurants and cafes.
Source: www.dpa.com
