Rejection of the extension of reduced tax rate in gastronomy by the Bundestag (Germany)

– The German Bundestag has rejected a proposal to permanently extend the reduced tax rate of 7% on food consumption in restaurants.
– The proposal, put forward by the CDU/CSU faction, was rejected in a second reading vote with 367 votes against 284 votes and 5 abstentions.
– The vote was based on a recommendation from the Finance Committee.
– A resolution proposal by the Union faction, which included the retention of the existing reduced VAT rate and flexible working time models, was not voted on.
– The reduction of the VAT rate for restaurant and catering services, excluding beverages, from 19% to 7% was introduced on July 1, 2020, due to the COVID-19 pandemic and has been extended multiple times, most recently until the end of 2023.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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