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German Federal Cabinet Approves Tax Changes: Higher Commuter Allowance and Reduced VAT for Gastronomy Sector
Berlin, Germany – September 10, 2025 – The German Federal Government today announced that the cabinet has approved a significant tax amendment law, bringing about welcome changes for commuters and the hospitality industry. This new legislation, officially titled the “Tax Amendment Law,” is set to implement a higher commuter allowance and a reduction in value-added tax (VAT) for the gastronomy sector, aiming to provide financial relief and stimulate economic activity.
One of the most prominent aspects of the new law is the substantial increase in the commuter allowance, also known as the “Pendlerpauschale.” This adjustment is designed to ease the financial burden on individuals who travel to work, particularly those undertaking longer commutes. The enhanced allowance aims to acknowledge the costs associated with daily travel and offer a more equitable form of tax relief to a broader segment of the workforce. Further details on the exact increase and the revised calculation methods are expected to be released in the near future.
In parallel, the Federal Government has also decided to lower the VAT rate for the gastronomy sector. This measure is intended to support restaurants, cafés, and other food service establishments, which have faced considerable economic challenges in recent times. By reducing the VAT, the government hopes to provide these businesses with greater financial flexibility, potentially leading to more stable pricing for consumers and encouraging greater patronage of local eateries. This move is seen as a vital step towards bolstering the resilience and recovery of Germany’s vibrant culinary landscape.
The approved tax amendment law signifies the government’s commitment to addressing key economic concerns and providing targeted support where it is most needed. The higher commuter allowance is expected to benefit millions of workers across Germany, while the VAT reduction for gastronomy is a positive development for both businesses and diners alike.
The Federal Government has emphasized that these changes are part of a broader strategy to foster economic growth and ensure social fairness. Further legislative steps and the official enactment of the law will follow in due course. Commuters and business owners within the gastronomy sector will be keenly awaiting the specific details and implementation timelines of these important tax adjustments.
Höhere Pendlerpauschale, weniger Umsatzsteuer in Gastronomie
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Die Bundesregierung published ‘Höhere Pendlerpauschale, weniger Umsatzsteuer in Gastronomie’ at 2025-09-10 09:52. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.