Saxony's hotel and restaurant association (Dehoga) calls for permanently reduced sales tax for restaurants

Saxony's hotel and restaurant association (Dehoga) is permanently demanding a reduced sales tax for restaurants and catering service providers. "The hospitality industry is under pressure," said chief executive Axel Klein in Dresden on Tuesday. In the Corona years, he said, 1452 inns disappeared from the map, "an average of three per municipality." And in the result of a current inquiry 7.7 per cent of the enterprises see their existence by the 2024 for meals planned return to the value added tax of 19 per cent acutely endangered. With it once again over 570 Gastgewerblichen enterprises in the Free State would stand before the end, said small. Since in addition 49.5 percent are still undecided, further closures could follow with a time delay.

The reduction to 7 percent sales tax for meals had come into force in 2020 in the Corona pandemic and is now to expire at the end of 2023. "It's not just about restaurants, it's about providing fresh, healthy food made from local products to the public, and to tourists," Klein said. In addition, restaurants also supplied for daycare centers, schools, social institutions as well as companies. Rising costs for personnel, energy and raw materials pressed on turnovers under pre-Corona level and endangered the economy.

That going out to eat becomes a luxury, "is not in the sense of the citizens", said Dehoga president Axel Hüpkes. Especially in rural areas, where attractiveness is needed, "it is now becoming tight." In addition, he said, with the tax increase there is a risk that parents will opt their children out of daycare or school lunches if prices continue to rise due to cost pressures.

The association estimates that costs will rise by 20 percent if the higher sales tax becomes a reality and wage increases and rising energy costs are added. "This is not a purely financial problem, but a problem for society as a whole," said Dehoga Vice President Jens Ellinger. With the closure of restaurants, places of communication and "a piece of German culture" are also disappearing.