Restaurant association expects price increases and insolvencies
The Bavarian Hotel and Restaurant Association has criticized the planned increase in VAT on food in restaurants, cafés and canteens. The consequences would be rising prices, falling sales and a loss of jobs and quality of life, said association president Angela Inselkammer in Munich. The traffic light coalition is "accepting insolvencies, training and job losses in rural areas and the increase in the price of food in almost all areas of our lives".
According to the German press agency Deutsche Presse-Agentur, the coalition wants to increase VAT from the current 7% to 19% from January. The rate was reduced during the coronavirus lockdowns in 2020 and then maintained due to the very high energy prices and inflation in Germany. In Bavaria, the catering industry employs around 450,000 people.
The proposed VAT increase on food in the hospitality industry, including restaurants, cafes, and canteens, could lead to significant price hikes for consumers. Consequently, the restaurant association predicts potential insolvencies and job losses within the sector, particularly in rural areas.
Source: www.dpa.com
