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Germany’s FDP Pushes for VAT Cut to Save Struggling Restaurants

Restaurants near you may soon get a lifeline as politicians fight to slash taxes. Could this be the rescue struggling businesses desperately need?

In this picture there are group of people, they are sitting around the table to the right and left...
In this picture there are group of people, they are sitting around the table to the right and left side of the image and there are food items on the table, there is a glass door at the center of the image it seems to be a hotel.

Gastronomy Under Pressure - Vogt Seeks Relief for Businesses - Germany’s FDP Pushes for VAT Cut to Save Struggling Restaurants

Christopher Vogt, leader of the Free Democratic Party (FDP) in Schleswig-Holstein, is pushing for a VAT cut on restaurant meals to ease pressure on the struggling hospitality sector. He wants the rate slashed from 19% to 7%, matching the tax already applied to takeaway food. The call comes as many businesses face closures due to rising costs and shrinking customer spending power.

Vogt argues that the current system unfairly penalises restaurants by taxing dine-in meals at a higher rate than takeaways. He sees no logical reason for this difference, especially when both involve the same food. His proposal also includes reducing bureaucracy to help businesses cope with economic challenges.

The proposed VAT cut aims to stabilise an industry hit hard by inflation, high operating costs, and declining customer budgets. If approved, it would align restaurant taxation with takeaway food and reduce financial strain on businesses. The outcome of the Bundesrat vote will determine whether the measure moves forward.

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