Dehoga: Tax cut is a relief for the hospitality industry

The industry in Saxony is hoping that the reduction in VAT on food in the gastronomy sector on January 1st will be a "liberating blow". This will help to maintain gastronomic diversity, explains Axel Klein, Managing Director of the Hotel and Restaurant Association. This will give businesses more scope for investment. Especially in rural areas, where numerous restaurants have had to close in recent years, the association is hoping for a trend reversal.

Panter: Tax cut secures jobs

The Bundesrat gave the green light on Friday, with votes from Saxony, for a permanent reduction in VAT in this sector from 19 to 7 percent. "Many companies in the catering industry are currently struggling with high costs and difficult conditions," explained Minister of Economic Affairs Dirk Panter (SPD). The tax reduction would strengthen the catering industry and thus secure jobs. "A functioning hospitality industry is essential for lively tourism in Saxony as a tourist destination," added Tourism Minister Barbara Klepsch (CDU).

Although some landlords will be offering their food at a lower price in the new year, Klein says that across-the-board price reductions on menus are not to be expected. However, the lower tax rate will not only affect restaurants. Community catering and caterers, who provide millions of people in schools, daycare centers, canteens and hospitals with freshly prepared meals, would also be strengthened by the move.