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Economic booster for Tuttlingen: sales tax on food falls!
The tax reduction on catering meals from 19% to 7% from 2026 will relieve the burden on the industry in the Schwarzwald-Baar district and promote competition.
Economic booster for Tuttlingen: sales tax on food falls!
Gastronomy in Cologne breathes a sigh of relief! From January 1, 2024, the sales tax for food in restaurants will be reduced from 19 percent to 7 percent. This long-overdue measure, which was decided by the federal government in the coalition agreement, provides a breath of fresh air in the industry. Previously, the reduced tax rate only applied to food that was sold to take away, which put many catering establishments at a disadvantage. The new regulation is intended to bring noticeable relief not only to restaurateurs in the Tuttlingen district, but nationwide. Veronika Trettner, operator of the popular “La Vie”, sees the reduction as a big step towards more fair competition and relief.
The changes are also important for snack bars and take-away offers, as they already operate with a sales tax rate of 7 percent. Holger Milkau, operator of Edeka markets, emphasizes that around 90 to 95 percent of sales in butchers and bakeries also fall under this reduced tax rate. In recent years, retail catering has even increased by 20 percent, while many stationary catering outlets have suffered losses in sales.
A relief for the industry
But what does the tax cut mean for the pricing of restaurants? Restaurateur Michael Staiger, also a representative of the German Hotel and Restaurant Association (Dehoga), made it clear that the higher operational costs in stationary catering, for example for waste disposal, have an influence on pricing. He announced that he would like to reduce prices where possible, but not by the full tax rate.
Alex Postolov from “Landhaus Donautal” sees it similarly. He welcomes the reduction as a positive step, but will not pass on the savings directly to the guests. Walter Knittel, managing director of Donaubergland Tourismus GmbH, also believes the reduction will benefit tourism in the region, but warns that guests should not have too high expectations of discounts as costs continue to rise.
Effects of the tax cut
Ingrid Hartges, managing director of Dehoga, has pointed out that the catering industry will not pass on the price reductions across the board to customers. The possibility of passing on depends heavily on the costs of goods and personnel. In addition, the recent increase in the minimum wage from January 1, 2026, which represents an increase of over 8 percent, has further complicated the situation.
However, the federal government, represented by Federal Finance Minister Lars Klingbeil (SPD), plans to closely monitor the cuts to ensure that they actually benefit end customers. It therefore remains to be seen what effect the new regulation will have in practice. Some experts believe that the tax cut can support many businesses to remain economically viable in the market in the future.
Given the challenges facing the hospitality industry, it is a ray of hope that the government is making efforts to support this important industry. Let's hope that the energy that can be drawn from this tax cut will also increase the number of visitors to Cologne's restaurants and that socializing will remain popular again!