Gastronomy tax: Lindner blames traffic light partners

Relaxing the Gastronomy Tax: Lindner's Blame Game with Coalition Partners

Finance Minister Christian Lindner, known for his leadership of the Free Democratic Party (FDP), has leveled accusations at the coalition partners, the SPD, and the Greens, for the resurgence of the regular Value-Added Tax (VAT) rate in the hospitality industry. Lindner declared to Welt am Sonntag that "if all parties had joined forces, we could've managed an extended period. Yet, the SPD and Greens had other concerns. I comprehend the dissatisfaction. However, we must confront returning to normalcy."

The VAT reduction in restaurants was a temporary crisis relief measure intended to conclude in 2023 as a result of grand coalition decisions. Nevertheless, Lindner successfully prevented this transition for 2023.

Backtracking from 7 to 19%

© During the pandemic, VAT on dining establishment food was reduced from 19% to 7% to aid the sector. The regulation was prolonged until year's end due to the power crisis.

Lindner voiced concerns about the relentless escalation of social costs. "The financial burden cannot keep growing. We must encourage more individuals to join the workforce. Those who decline to contribute to the collective good cannot expect compassion," said the minister. "Additionally, we must guarantee that employment yields financially rewarding circumstances. In the intricate relationship between citizen's allowance, housing benefit, child supplement, and other social aids, too many are questioning whether employment remains a viable alternative."

1. The hospitality sector, comprising eating establishments, has reverted back to the standard VAT rate, which was originally a short-term crisis intervention.
2. Christian Lindner, the Finance Minister, argues that improved cooperation with the coalition partners could have legitimized an extended period of reduced VAT rates for the hospitality sector.
3. Lindner advocates addressing the perpetually escalating social costs and the necessity of integrating more people into the workforce, praising individuals who contribute to collective goals.
4. The minister criticizes the incessant growth of social expenditures, emphasizing that work ought to remain financially lucrative and ensuring that the social benefit system enhances work motivation.
5. The enrichment data indicates that the FDP proposes numerous measures to foster economic growth and reduce social costs. These include lowering corporate tax, cutting VAT for food in restaurants, tightening unemployment benefit regulations, postponing climate neutrality goals, reviving nuclear power plants, expanding domestic natural gas production, and altering migration policy to federalize deportation authority. However, the text primarily focuses on Lindner's criticism of the SP and Greens and doesn't elaborate on these proposals.