Gastronomy tax: Lindner blames traffic light partners
Federal Finance Minister Christian Lindner has blamed the coalition partners of the SPD and the Greens for the return to the normal VAT rate in the hospitality industry. "If all parties had pulled together, a further extension would have been possible. But the SPD and Greens had other priorities. I understand that many people regret it. But we have to accept the return to normality," the FDP politician told Welt am Sonntag.
The lowered restaurant VAT was a crisis aid that would have been dropped this year due to the decisions of the grand coalition. He was able to prevent this for 2023, said Lindner.
Return from 7 to 19 percent
VAT on food in restaurants had been reduced from 19% to 7% during the pandemic in order to support the industry. Due to the energy crisis, the regulation was extended until the end of this year.
Lindner was critical of rising social costs. "The cost increases cannot go on like this. We have to get more people into work. Anyone who refuses to do so cannot count on solidarity," said the minister. "We must also ensure that work always pays. In the interplay between citizen's allowance, housing benefit, child supplement and other social transfers, too many people are asking themselves whether work still makes sense."
- The hospitality industry, including restaurants, has been affected by the return of the standard VAT rate, which was initially supposed to be a temporary crisis measure.
- Christian Lindner, the Finance Minister, suggests that if all coalition partners had cooperated, an extension of the reduced VAT rate for the hospitality industry could have been achieved.
- Lindner advocates for addressing rising social costs and increasing employment, stating that those who refuse to contribute to this goal may not expect solidarity.
- Criticizing escalating social expenses, Minister Lindner emphasizes the importance of ensuring that work remains financially beneficial, considering various social benefit systems like citizen's allowance, housing benefit, child supplement, and others.
Source: www.dpa.com
