FDP and CDU clash over VAT
The FDP and CDU in Baden-Württemberg are reproaching each other on the subject of the expiring VAT reduction for hotels and restaurants. After the FDP parliamentary group criticized Deputy Minister President Thomas Strobl (CDU) for his voting behaviour in the Bundesrat, his Interior Ministry fired back. "The FDP is responsible for the financial policy chaos of the traffic light system and the FDP's first idea for the self-inflicted budget crisis in Berlin is tax increases on restaurants," a spokesperson said in Stuttgart on Sunday.
Bavaria had previously failed in the Bundesrat with a proposal to permanently retain the lower VAT rate in the catering sector, which expires at the end of the year. A corresponding motion for a resolution to extend the lower tax rate of 7 percent for food to drinks failed to gain a majority in the state chamber on Friday.
The FDP then accused Strobl of hypocrisy. He had insulted the FDP in the federal government for days, "now he would have had the opportunity in the Bundesrat to approve a Bavarian initiative to maintain the 7 percent rate and is not doing so", said the chairman of the FDP/DVP state parliamentary group, Hans-Ulrich Rülke, on Saturday.
The Ministry of the Interior in Stuttgart commented: "The FDP is once again distorting the facts: The CDU Baden-Württemberg is in favor of retaining the lower VAT rate in the catering sector without any ifs or buts." The FDP appears to be unfamiliar with the parliamentary processes in the Bundesrat; the common goal with Bavaria was for the issue to be dealt with in the conciliation committee.
In the past, the Green coalition partners of the CDU in the southwest had expressed skepticism about retaining the VAT reduction. In its coalition agreement, the green-black government alliance has agreed to vote unanimously in the Bundesrat.
In this context of tax disputes within the German political landscape, it's worth noting that discussions regarding taxes in the hospitality industry are not limited to VAT. For instance, many establishments in the hospitality industry might also be subject to other taxes, such as business taxes or property taxes, which could significantly impact their operations and profitability.
Given the ongoing disagreement between the FDP and CDU over the VAT reduction for hotels and restaurants, it would be interesting to explore how these tax discussions might influence the overall business climate for the hospitality industry in Baden-Württemberg.
Source: www.dpa.com
