Berlin (dpa / bb) – Berlin’s CDU leader Kai Wegner is calling for a reduction in VAT in order to relieve citizens in the face of the sharp rise in energy and food prices. Decisive federal measures are now needed to avert economic and social difficulties, Wegner told the German Press Agency on Thursday.
“For the time of the crisis, a temporarily reduced value added tax must apply again,” he says, referring to a similar regulation that was in place at times due to the corona pandemic. “This is all the more true because the state has already generated high tax revenues through inflation.”
According to Wegner, the regular VAT rate should drop from 19 to 16 percent and the reduced rate from 7 to 5 percent. These measures have already proven to be effective. In addition to citizens, they would also benefit companies in all sectors, which are already suffering from high energy prices.
“In addition, the reduced tax rate should apply to energy costs,” demanded Wegner, who is also the leader of the CDU parliamentary group in the House of Representatives. After all, heat and electricity are basic human needs.
“With their lack of solidarity plans for the gas levy, the traffic light coalition is further heating up inflation, slowing down consumption and reducing the purchasing power of consumers even further,” criticized Wegner. Instead of the gas surcharge, which will be due for all gas consumers from October, the Berlin CDU is calling for a cap on energy prices, he says.
“For the basic needs of gas, electricity and heating oil, the consumer prices should be based on the average price level of the year 2021 for a limited period of time,” explained Wegner his ideas. “The federal government should reimburse the utility companies for the difference to the actual market prices for the period of validity of the cap limit.”
© dpa-infocom, dpa:220818-99-430288/2