Chancellor's Broken Promise Stirs Up Restaurant Industry
The Unfulfilled Promise
During the 2021 federal election, Olaf Scholz, the then SPD candidate for chancellor, made a bold promise. He claimed that the VAT on food in restaurants and pubs would remain at a reduced seven percent, forever. Fast forward to today, and it's clear that this promise has failed to materialize.
A Turnaround from the Chancellor
In a statement during the "ARD-Wahlarena," Scholz, now the chancellor, acknowledged that the reduction in VAT would remain in effect. But less than two years later, a ruling by the Federal Constitutional Court has brought about a change. From January 1, 2024, VAT will once again be charged at the full 19 percent on various dishes, including schnitzel, meatballs, pizza, and currywurst.
The Backlash
Restaurateurs have been left feeling bitter by this turnaround. Moritz Ludorf, head of the "Kleiner Kiepenkerl" restaurant in Münster, has even gone so far as to ban Chancellor Scholz from his premises. He questions the chancellor's memory and his commitment to keeping his promises.
The Impact on the Industry
Ludorf and many other restaurateurs see this as a slap in the face. The industry has fought hard for tax justice, and the sudden jump back in VAT rates will have serious consequences. The money that restaurants have passed on to their employees in recent years will not be easily regained. Prices will inevitably increase, with customers expected to shoulder the burden.
Politicians React
The FDP has urged the government to reconsider the decision to increase VAT in the gastronomy sector. During a parliamentary session, Olaf Scholz, the leader of the SPD's parliamentary group, was grilled over the issue. Controversy has also arisen in the political sphere, with the SPD's partner party, the Greens, criticizing the FDP's stance on the VAT increase.
In Conclusion
Chancellor Scholz's broken promise has sparked outrage in the restaurant industry. Many are worried about increased prices and the impact on their businesses. The situation highlights the importance of politicians keeping their promises and considering the impact of their decisions on everyday people.
Enrichment Insights
While the focus of the initial article was on Chancellor Scholz's broken promise, there are a few additional points to consider:
- General VAT Policy in Germany: Germany has implemented economic stimulus measures during the pandemic, including a temporary reduction in VAT until the end of 2020. However, there is no mention of a recent increase in VAT rates specifically targeting food in restaurants and pubs.
- Recent VAT Changes: No recent changes to VAT rates on food in restaurants and pubs in Germany have been reported. The focus has been on other economic measures and policies.
- VAT Rates Around the World: For context, other countries like Slovakia have recently clarified their VAT rates for restaurant services. In Slovakia, prepared or unprepared food consumed on the restaurant premises is taxed at a reduced VAT rate of 5%, while non-alcoholic beverages and beverages with an alcohol content of up to 0.5% are taxed at 19%.
- German Election Policies: The current election landscape in Germany does not specifically address VAT increases on food in restaurants and pubs. The main parties have focused on other economic and social policies.