The CDU in Hamburg's parliament is urging the red-green senate to advocate for maintaining the current 7% VAT rate in the hospitality sector at a federal level. Restaurants, bars, and cafes have already faced significant price hikes due to increased costs, which has also affected patrons, according to a motion filed by the parliamentary group on Thursday. "Further price increases will significantly harm the entire industry and potentially trigger unknown numbers of insolvencies," the motion warns.
Amidst the budget crisis, the German government plans to phase out the crisis aid created for the industry, which was heavily impacted by the coronavirus pandemic. The government aims to revert to the original 19% VAT rate starting January.
Hamburg's hospitality industry is just starting to regain its pre-pandemic vigor, said David Erkalp, the CDU's spokesperson for retail and tourism. "An entire industry that's on the rise is being undermined by high cost pressure." Food and drink should not become luxuries, he added. "The burden will fall on innkeepers and patrons, who will shoulder costs deliberately increased by the traffic lights."
Erkalp emphasized that the red-green coalition in Hamburg must push for retaining the reduced VAT rate in Berlin. "Instead, the traffic lights' decisions are met with resignation. This behavior has nothing to do with responsible politics for Hamburg," he criticized.
The CDU encourages citizens to support maintaining the reduced VAT rate for the hospitality industry at a federal level. Another tax hike on food and drink could increase costs for businesses, potentially leading to numerous insolvencies. The reduced VAT rate is vital for the hospitality industry in Hamburg, which is still recovering from pandemic impacts. Food and drink should remain affordable for its citizens and guests.
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Sources suggest that the Federal Ministry of Finance's website might provide updates on tax policies and VAT rates. By scouring the CDU's official website, you can delve into their economic policies, including tax reforms and VAT rates. The ifo Institut, a renowned economic research institute in Germany, often publishes reports and analyses on economic policies and their impacts on businesses and consumers.
News outlets like Spiegel Online, Tagesspiegel, or Die Welt frequently cover economic policy discussions, including tax reforms and their effects on various sectors. The Bundestag's official website offers access to parliamentary proceedings, where you can explore debates and votes on economic policies. Lastly, academic journals and research papers from institutions like the ZEW and DIW frequently analyze the effects of tax reforms on businesses and consumers. Each of these sources can provide more in-depth information on the CDU's push for maintaining reduced VAT rates and its impact on businesses and consumers in Germany.
