MV: VAT increase in gastronomy weakens tourism
The increase in VAT on food in restaurants from January 1 will weaken tourism in the vacation region of Mecklenburg-Vorpommern, according to politicians and the industry. The state's tourism commissioner and managing director of the MV state tourism association, Tobias Woitendorf, explained: "We are disappointed by this decision because we have to assume that Mecklenburg-Vorpommern will be particularly affected."
The importance of gastronomy in MV is above average and the existence of restaurants in rural areas is very important for hikers and cyclists. The proportion of self-catering guests in MV is already 72 percent and could rise further as businesses close, said Woitendorf.
Economics Minister Reinhard Meyer (SPD) criticized that the industry was now at a double disadvantage. "On the one hand, the VAT rate is rising and at the same time, the catering industry of all sectors is not benefiting from the reduced electricity tax," he criticized and announced: "As a state government, we will therefore raise the issue again in the Growth Opportunities Act."
Minister President Manuela Schwesig (SPD) emphasized that the VAT increase would put a number of catering businesses in a precarious situation and they would have to fear for their existence. "This is unacceptable for us as a tourist destination." This is why MV has introduced a Bundesrat initiative. To make matters worse, daycare centers, schools, hospitals and nursing homes would also be affected by a VAT increase in the catering sector. "An additional burden on families and senior citizens is the wrong decision," said Schwesig. "We need relief for families and the economy instead of a burden."
With their criticism, Woitendorf, Schwesig and Meyer were reacting to plans by the federal government coalition to raise VAT on food, which is currently still reduced to 7 percent, back to 19 percent at the beginning of the year. According to information from the German Press Agency, this was agreed on Thursday evening.
Mecklenburg-Vorpommern is one of the most popular vacation destinations in Germany. Almost 32 million overnight stays were recorded in 2022. The Left Party faction in the state parliament accused the traffic light coalition in Berlin of letting restaurateurs down.
The household budgets of many residents in Mecklenburg-Vorpommern may be affected negatively due to the increased VAT on food in the hospitality industry. Further, the tax increase could lead to the closure of various restaurants in rural areas, impacting the local tourism industry, which relies heavily on catering services for hikers and cyclists.
Source: www.dpa.com
