Dresden restaurateurs fear a price shock due to an increase in VAT

Dresden restaurateurs fear a price shock due to an increase in VAT

According to a report from www.saechsische.de, Dresden restaurateurs fear a price shock for restaurant visits if the VAT is increased again. The hotel director Florian Leisentritt from the Gewandhaus Dresden and his colleagues from the catering industry are expecting a VAT increase of 12 percent in the worst case scenario. This would result in the increased costs having to be passed on to customers.

Such an increase in VAT could have various effects on the market and the financial sector. On the one hand, the prices for restaurant visits would rise noticeably, which in turn could influence customers' consumption behavior. If prices get too high, people might eat out less often or spend less money on other consumer goods. This could reduce sales in the catering industry and put jobs at risk.

Furthermore, an increase in VAT could also lead to a change in restaurateurs’ income. If customers have to pay higher prices, this can lead to fewer guests coming and thus the restaurateurs' income. This could have a negative impact on the financial situation of companies and lead to financial bottlenecks.

In order to calculate the exact impact of a VAT increase, other factors would have to be taken into account, such as customer consumption behavior, the price elasticity of demand and the competitive situation in the industry. Nevertheless, it can be said that an increase in VAT in the catering industry would lead to higher prices for customers and could potentially have a negative impact on the market and the financial sector.