BERLIN (dpa-AFX) – Bavaria has failed in the Federal Council’s attempt to permanently maintain the lower VAT in the catering industry, which is due to expire at the end of the year. A corresponding motion for a resolution, which wanted to extend the lower tax rate of 7 percent for food to drinks, did not find a majority in the state chamber on Friday.
During the pandemic, the tax rate on food in restaurants was reduced from 19 to 7 percent. This measure to support restaurants was temporary. The planned return to the usual tax rate has been postponed several times. The traffic light coalition now insists that the tax rate rises again to 19 percent at the beginning of 2024.
Bavaria’s Prime Minister Markus Söder (CSU) warned in vain in the Federal Council of negative consequences for the catering industry: “Thousands of livelihoods are affected, throughout Germany.” If you want to save money, it’s better to do it elsewhere, such as with citizens’ money or the heating law. One could also postpone the planned expansion of the Chancellery “and instead enable people to eat cheaper and cheaper food.”/sk/DP/men