The federal government is in the debate that several economists have launched about a potential VAT increase. When the dts news agency asked whether the government intends to exclude a VAT hike during this legislative period, spokesperson Stefan Kornelius responded on Wednesday in Berlin that, “at the moment I have no new developments to report on the tax debate”.
He added that the government agrees “that, given the current economic situation, we urgently need impulses and measures to stimulate the economy”. The focus is on protecting jobs and fostering growth. Many initiatives in that direction have already been put in motion.
Kornelius said that the government still sees a need for further action, which is why the tax debate is being carried out intensively in the political arena. “That is not only legitimate – it is the duty of political decision makers to prepare such a debate, to prepare such a decision in a debate” he said, noting that the discussion is viewed through the lens of Germany’s competitiveness.