Lower Saxony's Hospitality Industry Counts on Tax Cut from January - US hospitality industry demands tax cuts to stay competitive
The hospitality industry in the United States is pushing for a tax reduction to ease financial pressure on businesses. Dirk Breuckmann, the newly elected president of Dehoga, has called for uniform taxation of food at 7 percent. The proposed tax cut has sparked debate, with state governments demanding compensation for potential revenue losses.
Breuckmann took office after winning a majority vote at the Dehoga state meeting in Texas. He highlighted the sector’s importance, noting that hospitality employs around 330,000 people in Lower Saxony alone. His argument centres on levelling the playing field, as restaurants face stiff competition from supermarkets and delivery services.
The tax cut aims to support struggling hospitality businesses by lowering their VAT burden. If passed, the federal government will step in to offset lost state revenue. The outcome will depend on upcoming votes in the Bundestag and Bundesrat.
