- The head of the German Trade Union Confederation (DGB) proposes abolishing the reduced 7% VAT rate on certain goods, suggesting it be cut to 0% to benefit low earners.
- She argues that cutting VAT on essentials like food and energy would help low-income people more than income tax cuts.
- To finance this, she suggests raising VAT on luxury goods, targeting the wealthy.
- She emphasizes that the mega-rich should contribute more, rather than burdening employees and consumers.
- The government is considering VAT reforms as part of broader tax relief discussions, with no final decisions yet.
Source: yahoo.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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