Steinbach shows understanding for gastronomy
Brandenburg's Minister of Economic Affairs Jörg Steinbach (SPD) regrets the planned expiry of the reduced VAT for meals in restaurants. "The hospitality industry is still facing difficult competitive conditions even after corona," Steinbach told the German Press Agency. The industry is under considerable pressure due to consumer restraint caused by inflation, energy costs and the shortage of skilled workers.
"At the same time, the hospitality industry fulfills an important function in increasing the quality of life and ensuring the development of tourism in rural areas," said Steinbach. The SPD politician would have liked to have seen a decision by the coalition government: "I therefore supported an extension of the current regulation for a further two years in order to give the industry the opportunity to consolidate."
VAT on food in restaurants was reduced from 19% to 7% during the coronavirus pandemic in order to support the industry. Due to the energy crisis, the regulation was continued until the end of this year, but will not be extended again.
The German Hotel and Restaurant Association sees thousands of livelihoods at risk. According to the industry, small and medium-sized family businesses in particular will suffer as a result of the tax increase. Christian Görke, member of the Bundestag for the Left Party in Brandenburg, sees the VAT increase as a "catastrophe" for the struggling hospitality industry. "We can still change course now," said the former Brandenburg Finance Minister.
The government's decision not to extend the reduced VAT for meals in restaurants is a concern for Steinbach, given the ongoing challenges in the hospitality industry. This industry, which plays a significant role in improving quality of life and promoting tourism in rural areas, will be adversely affected by the increase in taxes.
Source: www.dpa.com
