Schwesig calls for a quick reduction in VAT for restaurants in MV

Schwesig calls for a quick reduction in VAT for restaurants in MV

In Mecklenburg-Western Pomerania there are new efforts to relieve the burden on the catering industry. Prime Minister Manuela Schwesig has decided to reduce the VAT on food from 19 to 7 percent. This measure is supported by many, including in the Federal Council, and should be implemented in the new federal budget as quickly as possible. Schwesig sees gastronomy as a central point for the satisfaction of guests and locals, especially in the summer months, and shows great understanding for the challenges that the industry is struggling with. Among other things, she spoke kindly about the commitment of the employees in the hotel and restaurant industry and thanked them for their commitment. Food service reports that the Prime Minister is also against municipal packaging taxes, as further financial burdens for the catering industry would be unacceptable.

The support of established restaurants is not only politically but also regionally strongly anchored. In an exchange with the German Hotel and Restaurant Association (DEHOGA), she reiterated her agreement on the need to permanently reduce the VAT rate. News Tourism emphasizes that DEHOGA President Lars Schwarz sees the measure as a positive signal for companies and jobs and would like to create a further foundation for the development of the catering industry. This industry plays a key role in regional identity and brings people together.

The path to tax reduction

This demand was preceded by a long struggle for fairer taxation. Since the strains during the Corona pandemic, when sales tax on food was reduced to up to 7 percent, DEHOGA has been fighting for a permanent solution. DEHOGA MV notes that the temporary reduction from 19 percent has been extended to 7 percent in 2023. But in 2024 the original tax rate applied again, which presented many entrepreneurs with major challenges.

The permanent reduction from January 2026 has now been stipulated in the coalition agreement. This creates new hopes in the industry. Critics of the current regulation, who denounce unequal treatment between catering and various forms of food packaging, would like the catering industry to also receive fairer tax conditions. DEHOGA has launched various initiatives to make apprenticeships in the catering industry attractive to young people, for example through the “GastroBurner” project.

A look into the future

The intended reduction is not only intended to mitigate negative economic effects, but also to improve the situation for employees in the hospitality industry. More than two million people work in this industry and reducing the VAT rate is seen as the key to securing jobs. Especially in view of the investments in sustainable solutions and regional products, it becomes clear how important the catering industry is for society.

This positive development could ultimately benefit not only the industry, but also citizens by stabilizing prices and promoting the availability of high-quality and healthy food. It remains exciting to see how the situation will develop, but one thing is certain: a good hand is now needed to keep the gastronomic landscape in Mecklenburg-Western Pomerania alive and to bring people together.