Federal government presents €500 million package for restaurants and pubs.
Finance Minister Blümel: “The gastronomy sector presents a particular challenge. That’s why we have put together a restaurant and pub package worth €500 million.”
At today’s press conference on supporting the Austrian catering industry, the Austrian federal government presented a package worth €500 million. “The catering industry has been particularly hard hit by the corona crisis and therefore needs special measures. We have put together a package of tax relief on the one hand, and support and incentives on the other”, said Finance Minister Blümel. The package includes a reduction of tax on non-alcoholic beverages to 10% until the end of 2020. This corresponds to relief of around €200 million. Simplification and relief through higher lump sums was also announced. The lump-sum limit will be increased from €255,000 to €400,000. By increasing the mobility lump sum from 2% to 4% in municipalities with up to 10,000 inhabitants, and to 6% in municipalities with up to 5,000 inhabitants, more money is made available for rural restaurants and pubs.
Further, the maximum limit for tax-free meal vouchers has been raised from €4.4 to €8, the deductibility of business meals in inns increased from 50% to 75% by raising the applicable rate, and the tax on sparkling wine has been abolished. “Two brief illustrations: a village inn with a turnover of €115,000 per year currently pays €3,670 in taxes, but with these measures, it will pay only €871. Another example: an inn with an annual turnover of €160,000 currently pays taxes of €6,260 but will only pay €2,390 in future” said Finance Minister Blümel.
The fixed cost subsidy details and changes were presented last week, so that urgently needed monies could reach companies – and especially local landlords – as quickly as possible. “The subsidy compensates up to 75% of fixed costs and includes seasonal and spoiled goods. In this way, we are helping businesses that have been particularly hard-hit by the closures which the health crisis has necessitated. Notification of this subsidy has been with the European Commission since the weekend and I hope that the approval will come rapidly. Applications can then be submitted from 20 May and the first payments will be made a few days later," says Finance Minister Blümel.