Schwesig demands: Immediate reduction of gastro VAT to 7%!

Schwesig demands: Immediate reduction of gastro VAT to 7%!

Mecklenburg-Western Pomerania's Prime Minister Manuela Schwesig has taken a clear position: A rapid reduction in the VAT rate on food in restaurants is urgently needed. She announced that the state government would support this measure in the Federal Council in order to relieve the burden on the important hospitality industry in the region. Schwesig points out that gastronomy plays a central role in tourism in Mecklenburg-Western Pomerania and is extremely popular, especially in times when the industry is still struggling with the after-effects of the corona pandemic. According to the report by n-tv, a reduction in the tax rate is already planned in the new federal budget. The Berlin government parties are currently planning to permanently reduce the VAT rate for food from 19 to 7 percent.

A look at reality shows that the crisis in the catering industry has not yet been overcome. The closures during the pandemic and rising energy prices are weighing heavily on the industry. Schwesig is therefore calling for an extension of the reduced tax rate of 7 percent beyond the end of the year. As we know, the hospitality industry has been badly affected and the need for a permanent reduction is supported by many quarters. The FDP state and parliamentary group leader René Domke emphasizes that a reliable tax regulation would create planning security and acceptance. This is in the interest not only of restaurateurs, but also of citizens.

The support of the industry

DEHOGA, the German Hotel and Restaurant Association, has fought for a reduced tax rate in the catering industry for years. During the coronavirus pandemic, sales tax on food was briefly reduced to 7 percent, providing much-needed relief. From 2024, the tax should rise again to 19 percent, but Schwesig and DEHOGA are vehemently committed to ensuring that the reduced rate of 7 percent is retained. This is not only essential for the catering industry, but also promotes social meeting places in society.

An unchanged tax rate would discourage many guests from visiting restaurants. This would not only have a negative impact on the industry, but also on employees, more than two million of whom work in the catering industry. A low tax rate helps to better cover personnel costs and at the same time keep prices stable for consumers.

Gastronomy needs equal opportunities

Another point of criticism raised by DEHOGA concerns the unequal treatment between the catering industry and the sale of ready-to-eat food in supermarkets. This distortion of competition must be eliminated in order to ensure fair competition. In many neighboring European countries there are already no tax differences between different types of food. A uniform tax rate would not only support the catering industry, but also promote healthy eating, especially for daycare and school meals.

In summary, it can be said that Schwesig's call for a permanent reduction in VAT in the catering industry is not only a valuable contribution to supporting this often disadvantaged industry, but also benefits the entire tourism sector. The support of the state government and the state parliament is of great importance here. It is clear: it is now up to the federal government to make courageous decisions to keep the catering industry alive and to offer the people of Mecklenburg-Western Pomerania a promising future. Let's stay tuned to see how the political decisions will develop.