Restaurant tax too high? Does it matter ?

In Germany there is talk of 40,000 companies going bankrupt if, as planned, VAT is increased again to 19%. It's surprising that so many still exist after Corona and the bad economy. In Great Britain it is 20% percent, in Croatia even 25% taxes in the catering industry.

So it doesn't actually matter whether we pay 7% percent or 19% percent. Before 2019, no one complained about it. The real problem is that we pay the taxes plus the enormous energy costs now imposed by the state, plus food inflation of up to 100%, plus the increased personnel costs (if we can still find someone), plus higher rents and leases, plus higher maintenance and repair costs, plus many taxes such as Co2 taxes, tolls, etc. The cocktail, the whole mix, is the problem! Complaining about individual parts is of no use if you can't solve the whole problem. But no one really seems to want to work on it.

And once again experts have their say who have probably never run a business or worked in their lives.

(A Taxexperts that writes that it is not the resposibility of governments to support hospitality)

Subsidy means “to support”. Taking away 7% percent taxes or taking away 19% taxes still remains - take away - not support.

In forums where this is discussed there are comments like: “but craftsmen also have to charge 19% - that’s not fair”. Correct. But then aren't we both stupid? Maybe we should both complain rather than point fingers at each other?

Deutsche Bahn received real subsidies.

“The federal government pumped more than ten billion into its companies in 2021, eight of which went into Deutsche Bahn.”

September 8th, 2023 tagesschau.de

And nothing works at Deutsche Bahn! Money well spend.

And we still pay tax on everything we consume. An interesting graphic shows what remains of our wages, using Germany as an example, after we have paid all taxes and duties. That's before we've paid rent, filled up with gas or bought a kilo of tomatoes.

Here the German examle where it shows how much is left of your salary when you live normal, pay all taxes on salary and on daily life and products purchased. From 4500 Euro only 1181 Euros are left.

What we need to avoid is blaming and dividing each other. The hotel and catering industry is at the point where we will only be offered large chains and junk food.

It will be a difficult road. Peace is one of the cornerstones that the hotel and catering industry needs - the world does not look peaceful at the moment. We are experiencing change. We have to rethink. This is difficult because thinking for yourself is not as easy as Corona has shown us when joggers jogged alone in the forest wearing masks or married couples drove in the car with masks on. If that was good, 19% percent is also good!

It takes a lot of things over which we have little influence. Laws, tax adjustments and general prosperity and a healthy middle class so that things can go up again. At the moment we have to survive.

Stephan Busch has an invaluable and diverse experience in the hospitality industry ranging from senior management positions with the most renowned hotel and resort companies to the project development - launch of operations, business development- for hotel and cruise companies in Asia, Europe, Canada and Russia.

His expertise includes not only planning, opening and operating of hotels, international golf clubs, airports, resorts and cruise ships, but also successful restructuring and repositioning of businesses during the financial crisis in Asia.

Stephan Busch earned his Master Certificate in Hospitality Management from Cornell University, USA and served many years as Academic Director / Faculty of Hospitality & Tourism at the State University for Humanities RGGU as well as the Swiss International University St. Petersburg.