A proposed reduction in VAT on beer and wine served in the hospitality sector has been rejected. The announcement came on Wednesday in the Chamber of Deputies, following a motion by the Alternative Democratic Reform Party (ADR), which ultimately failed to gain support.
While small bistros are struggling to stay afloat and bankruptcies in the hospitality industry are on the rise, most parties in Parliament argued that a VAT cut on alcoholic beverages would not offer meaningful relief.
Finance Minister Gilles Roth emphasised that the issue needs to be addressed more comprehensively: “We must ask ourselves why more and more cafés, bistros, and restaurants are facing difficulties.”
Parliament also pointed out that a VAT reduction on alcohol is currently not feasible due to EU regulations.
