In light of the proposed economic stimulus package and the proposal of a permanent reduction of VAT rates for labor intensive services, Ernst Burgbacher, parliamentary executive of the FDP party, explains:

I request the federal government to finally drop its resistance against a reduction of VAT rates for the hotel industry and gastronomy in Germany. In light of the current economic situation, it is high time for an improvement of the general regulations pertaining to tourism policies.

This central demand of the tourism industry and the federal party FDP is backed up by the EU committee, which also proposes reduced VAT rates for labor intensive services in its recent stimulus package, hoping to enhance employment.

The introduction of reduced VAT rates for the German hotel industry and gastronomy is an important signal for this labor intensive service industry to have a good standing in the international competition.