FDP wants to extend VAT reduction for restaurants
FDP parliamentary group leader Christian Dürr is linking the retention of reduced VAT in the catering sector to a reduction in spending on the citizens' allowance. "The Bundestag should extend the VAT reduction in the catering sector for another year. This could be financed if we get more people into work," he told the "Bild" newspaper (Monday). Specifically, Dürr suggested extending the faster placement of Ukrainian refugees in jobs planned by Federal Minister of Labor Hubertus Heil (SPD) to all asylum seekers. Language barriers should be removed so that those affected could be placed more quickly. If a job is not accepted, there should be a threat of benefit cuts.
"In this way, we could integrate significantly more people into the labor market and save at least the 1.8 billion euros in citizen's income that we need to maintain the reduction in VAT for restaurants," explained Dürr. This could be a win-win situation. "Because employees are desperately needed in the catering industry in particular."
During the coronavirus pandemic, VAT on food in restaurants was reduced from 19% to 7% in order to support the industry. Due to the energy crisis, the regulation was extended until the end of this year. However, in October, the Ministry of Economic Affairs put the amount of tax that would have been lost if the extension had been granted at 3.4 billion euros.
- The proposed VAT reduction extension for restaurants by the FDP could potentially provide more opportunities in the household budget for individuals who frequently dine out in the hospitality industry.
- Christian Dürr, the FDP's parliamentary group leader, believes that the integration of more refugees into the workforce could help finance the extension of the VAT reduction for the gastronomy sector.
- A VAT reduction extension for restaurants, financed by promoting migrant employment and addressing language barriers, could be a potential solution to the social affairs challenge of supporting both businesses and refugees.
- If the FDP's proposal to integrate more refugees into the labor market materializes, it could lead to more savings in social welfare costs, which could be allocated to maintain VAT reduction for the hospitality industry.
- The proposed VAT reduction extension for restaurants and the plan to encourage refugee employment in the hospitality industry by the FDP could be beneficial for the employment situation of refugees and the struggling gastronomy sector.
Source: www.dpa.com
