Gastronomy: Dehoga expects significant price increases
The German Hotel and Restaurant Association (Dehoga) in Baden-Württemberg is expecting "considerable price increases in the catering trade" in the southwest from next year. The background to this is that VAT on food in the catering industry in Germany will be raised again to 19 percent at the beginning of the year. According to information from the Deutsche Presse-Agentur, this was agreed by the "Ampel-Koalition" coalition. The "Handelsblatt" had previously reported.
According to the press release, Dehoga state chairman Fritz Engelhardt said that the decision was a low blow for the medium-sized hospitality industry. This will further accelerate the death of village inns. Not only the businesses, including their employees and guests, but also the entire tourism industry in the country would suffer. "We are deeply disappointed," said Engelhardt.
Takeaway, supermarket or delivery food is taxed at seven percent. In order to relieve the gastronomy sector during the coronavirus crisis, the tax rate for food in restaurants and cafés was also temporarily reduced from 19 to 7 percent. The regulation was extended several times due to the energy crisis, most recently until the end of this year. The industry had recently campaigned vehemently for the tax cut not to be allowed to expire.
The raise in VAT on food in the catering industry to 19% will impact the hospitality industry significantly, adding to the existing pricing challenges. This increase in taxes may further strain the medium-sized hospitality businesses in Germany.
Source: www.dpa.com
