German lawmakers’ push for tax cuts on essential goods and public transport amid rising costs
The Left Party is now urging the reduction of value-added tax (VAT) on staple food items, hygiene products and public transportation, following the recent agreement by the Union and SPD to lower the VAT for the gastronomy sector. Christian Görke, the Left Party’s financial spokesperson, told the Rheinische Post that the reduction of VAT on the proposed products would greatly help many people, particularly those with low incomes, to make ends meet.
The German Bundestag is set to discuss a corresponding proposal from the Left Party at the end of June. Görke emphasized that many people have been struggling due to the recent years of inflation, with prices for fruits and vegetables rising by around six percent. Average wage increases would not be enough to offset the costs.
Furthermore, the abolition of VAT on public transportation would also promote environmentally friendly travel, according to Görke, the former Brandenburg Finance Minister. The EU has allowed the abolition of VAT on a certain number of products since 2022. “Other EU countries have at least temporarily abolished VAT on staple food items, for example, Spain and Poland” Görke said.