Overview

• The VAT on dine-in meals will fall from 19% to 7% next year under the coalition agreement.
• Finance Minister Lars Klingbeil insists he will monitor that tax savings translate into lower menu prices.
• No federal reimbursements will be made to states despite projected annual revenue losses of up to €4 billion.
• Dehoga chief Ingrid Hartges says rising labor expenses and input costs, including a minimum wage hike, may block widespread price cuts.
• Restaurants already compete with takeaway and delivery services taxed at 7%, heightening concerns over squeezed margins and limited consumer relief.