Germany Discusses Abolishing VAT on Food Due to Rising Prices
The ruling coalition in Germany is considering the temporary removal of VAT on basic food items to alleviate inflationary pressures.
Jens Spahn, chairman of the CDU/CSU parliamentary group, said in an interview with *Die Welt*: "Within the framework of a comprehensive package of measures, it is conceivable to reduce the VAT on essential foodstuffs to zero."
He stated that this move could partially offset inflationary pressures caused by rising fuel prices linked to the situation in Iran.
Currently, Germany's standard VAT rate is 19%, while certain food items are subject to a reduced rate of 7%. Earlier, Merz also indicated that lowering taxes to support low-income households was not ruled out. However, the final decision will depend on the overall fiscal plan, as the government is simultaneously exploring other budget policy options.
The German government noted that price increases in supermarkets have not yet become significant, but risks remain due to rising transportation costs.
Original article: toutiao.com/article/1860922280334336/
Disclaimer: The views expressed in this article are those of the author alone.