Beer lovers in Saxony must prepare for higher prices at the start of this year's beer garden season. "Beer has become more expensive because the purchase prices per hectoliter have risen for restaurateurs," said Axel Klein, Managing Director of the Saxony Hotel and Restaurant Association, to the German Press Agency. Among other things, this is the result of higher production costs. In addition, the VAT rate of 19 percent has applied again since January. Another reason is higher personnel costs. Klein also assumes that the higher prices are also related to the decline in beer consumption.
In 2020, the German government had decided to reduce VAT in the catering sector as a matter of principle due to the coronavirus pandemic. This temporary relief regulation expired at the end of 2023. With the return to the VAT rate of 19% instead of 7%, the normal situation from before the pandemic will therefore apply again. Ultimately, however, the restaurateurs will decide whether to pass on the higher tax to customers.
