The federal government has remained silent amid a debate-sparked by several economists-about a possible rise in the value‑added tax (VAT). When the dts news agency asked spokesman Stefan Kornelius on Wednesday whether a VAT increase would be ruled out for this legislative term, he said that, regarding the tax discussion, the government had “no new developments to report at this time”.
He added that the government is in agreement that the current economic climate urgently requires stimulus and measures to revive growth and secure jobs. Several initiatives aimed at this objective have already been put in place. Kornelius also emphasized that, although the government recognises a need for additional action, the tax debate is intensively being pursued within the political arena. He framed this as a legitimate task for policymakers-to prepare and conduct such debates and decisions. The government views the discussion also in light of Germany’s competitiveness, which is why the debate is being carried out now.
