The grand coalition of the German Chancellor, Angela Merkel, agreed this Wednesday (02/03/2021) new improvements in family and business benefits, as well as maintaining the reduced VAT rate in restaurants, to mitigate the effects of the closure of life derived from the pandemic.
The value added tax -VAT- will thus remain at 7% in bars and restaurants until 2022, which represents a new extension for this reduction, implemented last year.
A new premium was also approved for family assistance per child -of 150 euros-, which follows that of 300 euros last year, sources from the coalition reported after their meeting at the Foreign Ministry.
It was also decided to increase the compensation that companies receive for billing drops derived from the partial or total closure of their activities, starting with this calculation of the income and expenses prior to the stoppage in their activity.
The details of the agreement will be announced tomorrow by the three parties of Merkel’s grand coalition: the Christian Democratic Union (CDU), its sister Social Christian Union of Bavaria (CSU) and the Social Democratic Party (SPD).
The meeting held at the Foreign Ministry was the first to be held this year and its agenda was marked by the consequences of the closure of public life derived from the pandemic.
Since November leisure, restaurants and cultural activities have been closed. To that closure was added, in December, that of non-essential shops and face-to-face school life. (efe)
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