Media report: FDP wants to extend gastro VAT reduction

Media report: FDP wants to extend gastro VAT reduction

According to the FDP, the VAT reduction in the catering industry should be extended for another year. The money for this should come from faster placement of refugees into work.

FDP parliamentary group leader Christian Dürr links maintaining the reduced VAT in the catering industry to a reduction in spending on citizens’ money. “The Bundestag should extend the gastro VAT cut for another year. This could be financed if we put more people into work,” he told the “Bild” newspaper (Monday). Specifically, Dürr suggested extending the faster placement of Ukrainian refugees into work planned by Federal Labor Minister Hubertus Heil (SPD) to all asylum seekers. Barriers to language skills should be reduced so that those affected can be placed more quickly. If a job is not accepted, there should be a risk of benefit cuts.

“In this way, we could integrate significantly more people into the labor market and save at least the 1.8 billion euros in citizens’ money that we need to maintain the gastro VAT reduction,” explained Dürr. That could be a win-win situation. “The catering industry in particular is desperately looking for employees.”

The VAT on food in the catering industry was reduced from 19 to 7 percent during the corona pandemic in order to support the industry. Due to the energy crisis, the regulation was extended until the end of this year. In October, however, the Ministry of Economic Affairs put the tax amount missing from an extension at 3.4 billion euros.

Source: Stern

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