According to Finance Minister Christian Lindner, plans for a longer reduction in VAT in the catering trade are on the brink. The measure is included in the draft budget for 2023, but is controversial within the coalition, the FDP politician confirmed at the request of the German Press Agency.
“It is correct that the Greens have great reservations,” he said. He takes that seriously. “I expect a debate on this in the parliamentary consultation process,” said Lindner.
The VAT on food in the catering trade was reduced from 19 to seven percent during the corona pandemic – originally limited to the end of 2022. At Lindner’s suggestion, the cabinet had approved an extension to 2023.
The costs for this are estimated at 1.5 billion euros. In the federal election campaign, Chancellor Olaf Scholz (SPD) had not even ruled out a permanently reduced tax rate.
Lindner said he would continue to promote the extension given the currently high prices. “If the full VAT rate were to be levied on visits to the restaurant again from January, that would further increase inflation,” he said. “Everyday life would become even more expensive.”
