Study finds restaurant prices largely unchanged despite VAT cut
A new NGG study shows that most meals in German restaurants have not become cheaper even after the government reduced VAT to seven percent.
The German government lowered the value-added tax on food service to seven percent at the start of the year, promising relief for diners. However, research commissioned by the trade union NGG indicates that price reductions are not being passed on to customers. Almost all menu items remain at previous price levels, and restaurant workers worry that longer hours may increase their workload.
Why it matters
Consumers may not see the promised savings on restaurant bills despite the tax reduction.
In this story
VAT reductionrestaurant pricesNGG studyconsumer reliefhospitality sectorprice pass-through
