Lindner sees responsibility for SPD and Greens
Statements by Finance Minister Christian Lindner indicate that there was once again disagreement within the traffic light coalition. The FDP politician blames the SPD and the Greens for the upcoming increase in VAT in the catering sector from seven to 19 percent.
Following the decision to phase out the reduction in VAT in the catering sector at the end of the year, Federal Finance Minister Christian Lindner has blamed his partners in the governing coalition. "If all parties had pulled together, a further extension would have been possible," Lindner told Bild am Sonntag. "But the SPD and Greens had other priorities."
The reduced VAT rate of seven percent was a crisis aid for the catering industry, which would have been abolished this year as a result of the grand coalition's decisions. "I was able to prevent that for 2023," said Lindner. He understands that many would regret the return to the 19 percent VAT rate on food in restaurants.
The traffic light parliamentary groups had decided on Friday night to phase out the reduced rate of seven percent for restaurants at the end of the year. It had been introduced due to the coronavirus pandemic and the consequences of the war in Ukraine. The restaurant association Dehoga had stated that this decision would result in a loss of sales, job losses, business closures and insolvencies.
Criticism from the industry regarding the VAT increase is primarily directed at Federal Chancellor Olaf Scholz. He had promised in the ARD "Wahlarena" in 2021 with regard to the reduced tax: "We will never abolish it again" - and thus raised high hopes among many restaurateurs.
In response to the coalition's decision to increase VAT in the catering sector, Christian Lindner, the FDP's Finance Minister, has criticized SPD and Greens for prioritizing other issues over extending the reduced VAT rate. The Traffic Light Coalition's decision to phase out the seven percent VAT rate for restaurants at the end of the year has been met with criticism from the gastronomy industry, as this change could result in significant losses for businesses.
Source: www.ntv.de
