Reducing VAT on alcohol in Europe would allow an upturn in the hospitality industry
In an interview with EURACTIV, the Secretary General of Brewers of Europe suggested that reducing VAT would help business in the hospitality industry.
Reducing VAT on alcohol across Europe would allow a rapid rebound in the hospitality sector. This was confirmed by Pierre-Olivier Bergeron, Secretary General of Brewers of Europe. “If Germany can reduce its VAT from 19 to 16%, then other Member States can do the same.” Bergeron said in an interview with EURACTIV.
This reduction would allow bars and restaurants, a key part of the sector, to recover quickly. As a result, the hospitality industry in Europe as a whole would recover more quickly from the impacts of covid-19.
As an example of this strategy, the German government implemented a VAT reduction down from 19 to 16 %. For Brewers of Europe this is a “creative” move. Moreover, no new legislation would be needed to make it happen. Some Member States have already implemented a reduction in VAT, fr example, on food and soft drinks, and in some cases on alcohol.
In recent weeks, organisations representing the hotel and catering sector and the food industry have sent several letters to the EU institutions calling for immediate action.
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