Trade Union Chief Against Lower Restaurant Tax
A permanent VAT cut for restaurant meals has sparked debate between industry leaders and unions. From January 1, 2026, the tax rate will drop to 7% after the Bundesrat approved the change. The German Hotel and Restaurant Association (DEHOGA) welcomed the decision, but the hospitality workers’ union NGG strongly opposes it.
On December 19, 2025, DEHOGA announced its support for the VAT reduction. The association argued that the tax cut would help businesses and let them decide how to use the savings. Individual restaurants could choose to lower prices, invest in staff, or improve services.
Guido Zeitler, head of the NGG union, criticised the move. He claimed the tax cut would cost public budgets nearly €4 billion a year. According to him, the benefits would mostly go to high-end diners rather than struggling workers. Zeitler also pointed to past tax cuts, like the 2010 VAT reduction for hotels, which he said failed to help employees. Instead of tax breaks, he proposed direct support for staff through housing benefits, wage top-ups, and cheaper transport.
The new 7% VAT rate for restaurant meals will start on January 1, 2026. DEHOGA backs the change, while NGG insists better solutions exist for workers. The debate highlights differing views on how to support the hospitality industry.
Read also:
- Federal Funding Supports Increase in Family Medicine Residency Program, Focusing on Rural Health Developments
- Potential Role of DHA in Shielding the Brain from Saturated Fats?
- Alternative Gentle Retinoid: Exploring Bakuchiol Salicylate for Sensitive Skin
- Hanoi initiates a trial program for rabies control, along with efforts to facilitate the transition from the dog and cat meat trade industry.
