The boss of the German Trade Union ConfederationYasmin Fahimi, has spoken out in favor of completely abolishing the reduced VAT on certain goods. “Reducing the reduced VAT from seven to zero percent would be a strong signal, especially for low earners,” she told him Daily Mirror. According to Fahimi, a reduction in VAT on food and energy, for example, could help people with lower incomes much more than a reduction in income tax.
Asked about counter-financing said Fahimi: “Germany could introduce a much higher VAT on luxury goods, such as extremely expensive watches, yachts, jewelry or luxury cars.” That would only burden those who could shoulder it well. “Overall, mega-rich people and billionaires need to be held much more accountable instead of putting a burden on employees and consumers,” said the DGB boss.
Currently, most goods have one VAT
of 19 percent, and a reduced rate of seven percent applies to selected foods. According to reports, the federal government had the effect of a VAT increase calculated as part of the reform debate. Chancellor Friedrich Merz (CDU) had not ruled out that taxation could be changed in connection with the desired relief for employees and companies. The black-red coalition partners are looking for financing options for a desired one Income tax relief and social security contributions.