Restaurant industry: from 2026 tax relief for catering and commuters planned

The gastronomy and commuters are to be relieved from January 1, 2026. The Federal Ministry of Finance launched changes in the law. Specifically, sales tax for food in the catering trade is to be permanently reduced from the current 19 to 7 percent. The commuter flat rate is to be increased to 38 cents from the first kilometer. This provides for the draft of a tax change law 2025, which is available to the German Press Agency. The design went into the internal government vote.

The ministry has thus implemented projects that the CDU, CSU and SPD have announced in the coalition agreement.

Passing on the relief to customers questionable

In the draft, the aim of the measure is to reduce the sales tax for food for food in the catering trade. “Both the transfer of tax cuts to consumers and additional investments are possible,” it says.

However, it is open whether price reductions occur in restaurants. In the first half of the year, the sales of the hospitality industry fell again by 3.7 percent compared to the already weak period of the previous year, the Federal Statistical Office reported. The industry relies on VAT cuts.

The general manager of the DEHOGA industry association, Ingrid Hartges told the dpa that the discharge was important because there was finally tax fairness towards food to take away and the food delivery, for which a VAT rate of 7 percent applies. To pass to customers, she said: “This is not a question of wanting, but of skills.” Among other things, she referred to the development of food prices, increasing salaries for employees and further costs. “But I am sure that where there are scope, there will also be measures to regain lost guests with price attractive offers.”

Customers should not hope for a sinking prices, according to the NGG union. At the beginning of 2024, the VAT rate for food reduced during Corona pandemic was increased again.

Increase in the commuter flat rate

The commuter flat rate is currently 30 cents per kilometer for the first 20 kilometers from the apartment to work. From the 21st kilometer you can start 38 cents.

In the case of environmental associations, the now planned increase has met with criticism. BUND traffic expert Jens Hilgenberg said that the upper ten percent of the income benefited. “The fact that people with low incomes benefit little or no at all from the increase is because their income is so low that they do not pay income tax and are therefore unable to deduct anything.”

It is also planned to raise the so-called trainer and volunteer flat rate. The volunteer flat rate is to be increased from 840 euros to 960 euros from January. The exercise allowance is to be raised from 3,000 euros to 3,300 euros – this applies to activities, for example from sports trainers, choir managers or volunteers. The federal government wants to strengthen voluntary work. Since voluntary work can also be associated with costs, according to the draft, no taxes are levied on volunteers until an allowance.

Conflict between the federal and state governments

In addition to the Bundestag, the Federal Council must also agree to the changes. According to the draft, the relief ensures tax reductions of several billion not only with the federal government, but also in the countries. That should ensure conflicts again.

In the event of a “growth booster” that has already been decided with tax relief for companies, the federal government had promised compensation for billions of compensations to the federal states – the countries had asked for this so that they agree to the changes.

Federal Minister of Finance Lars Klingbeil (SPD) had already clearly said that he did not see any opportunities for the federal government to relieve the countries in increasing the commuter flat rate and the reduction in VAT in the catering failures. There are no scope for this. In the federal financial planning of the federal government gaps.