Kaniber: Start-up for low sales tax in gastronomy
In the final phase of the Berlin budget negotiations, Tourism Minister Michaela Kaniber (CSU) is making a new attempt to introduce a reduced seven percent VAT rate for restaurants. In a letter to Federal Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck, the CSU politician criticizes the unequal tax treatment of restaurants and inns compared to fast food chains and supermarkets.
The German government had reduced the VAT rate for food in restaurants and cafés from 19% to 7% during the coronavirus pandemic. This is now to be reversed. This Thursday, the Bundestag's Budget Committee will meet to discuss the final amendments to the 2024 draft budget. "A visit to the pub must not become a luxury good," said the minister on Wednesday regarding the foreseeable price increases.
Kaniber criticized the differences in taxation between pubs and restaurants on the one hand and takeaway fast food on the other. Food retailers had considerably expanded their range of "ready-to-eat meals" with a reduced tax rate. "Businesses that score points with good service and products from the region would again be at a disadvantage compared to fast food chains, which can offer takeaway meals at a reduced VAT rate - despite the waste they generate," the letter states. "In many other EU countries, on the other hand, no distinction is made for tax purposes between food from the supermarket, takeaway and stand-up food and food in restaurants and marquees."
In light of the budget negotiations, Tourism Minister Kaniber advocates for a reduced VAT rate for the hospitality industry, arguing that restaurants and inns are unfairly taxed compared to fast food chains and supermarkets. The hospitality industry, which relies on good service and local products, could face disadvantages if takeaway food is taxed less, despite its environmental impact.
Source: www.dpa.com
