The Commission is recommending a decision on the adoption of the proposed new regulations.
Saarland State Parliament to Discuss Permanent VAT Reduction for Restaurants and Catering Services
The Christian Democratic Union (CDU) state parliamentary group in Saarland is set to propose a permanent reduction of the Value-Added Tax (VAT) rate for restaurants and catering services during the upcoming session on September 20. The proposed rate is the current 7 percent, which has been temporarily implemented due to the challenges faced by the industry during the coronavirus pandemic and rising costs.
Stephan Toscani, the chairman of the CDU state parliamentary group, stressed the significance of a vibrant gastronomy sector in Saarland, stating, "From local delicacies to Michelin-starred cuisine, our gastronomy plays a crucial role in enhancing the quality of life in Saarland and attracting both domestic and international visitors."
Toscani further explained that the industry has been significantly impacted by the pandemic and increasing energy and food prices. As a response, the CDU state parliamentary group is advocating for a permanent VAT reduction, which would not only benefit restaurants and catering services but also sectors such as catering, food retail, bakeries, and butcheries.
The proposed VAT reduction finds support on multiple political levels. Recently, the Minister President expressed a desire to retain the reduced rate. Toscani commented, "With our motion in the state parliament, we provide the Minister President with the opportunity to turn her words into action." The German Federal Finance Minister has also shown openness to the idea.
While similar proposals are in line with general party positions and economic needs in the hospitality sector, it is important to note that there is currently no explicit confirmation or report on a permanent VAT rate reduction specific to Saarland's restaurant and catering services with backing from the CDU, the Minister President, and the Federal Finance Minister. Nevertheless, regional parties like the CDU in Saarland often advocate for reduced VAT rates for hospitality sectors as a means of economic stimulus, and local Minister Presidents have in the past advocated for such measures.
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- The CDU's proposed permanent VAT reduction for restaurants and catering services, if approved, could positively impact various sectors, including food retail, bakeries, and butcheries, as they would also benefit from the reduced tax.
- In addition to enhancing the local food-and-drink industry, the proposed permanent VAT reduction for restaurants and catering services could also contribute to Saarland's lifestyle and tourism sectors by attracting domestic and international visitors.
