German consumer groups demand VAT cut on fresh food
The Federation of German Consumer Organizations has called for the abolition of VAT on fruits, vegetables and legumes to cushion the impact of rising food prices.
With inflation at a forty-year high and the price of groceries continuing to go up, consumer and social associations are now calling for value-added tax (VAT) on certain foods to be completely abolished.
The social association VdK, the Federation of German Consumer Organizations (VZBV) and the German Diabetes Association have all called on the German government to use new EU regulation to scrap the tax on basic food products.
A reduction on VAT for food had previously been ruled out due to the so-called EU VAT Directive, which dictates that the regular tax rate must be at least 15 percent, and the reduced rate must be at least 5 percent.
But an amendment to the directive that came into force two weeks ago means that is now possible to introduce total tax exemptions for foodstuffs.
READ ALSO: Will Germany reduce VAT to ease the cost of living crisis?
Verena Bentele, president of the social association VdK said that the current cost of living crisis means that low-income earners, pensioners and basic income recipients are struggling to pay their food and electricity bills.
"The VdK is therefore calling for the value-added tax on basic foodstuffs to be drastically reduced to zero percent. The German government must make full use of this option, which now exists for all EU member states," she said.
The Federation of German Consumer Organizations (VZBV) also advocated the abolition of VAT, especially on fruit, vegetables and pulses.
Food expert Christiane Seidel from the VZBV said "This would make it easier for many people to eat healthily and contribute to climate-friendly food production."
Similar demands came from the German Diabetes Society. "A healthy diet should not be a question of money," said executive director Barbara Bitzer said.
READ ALSO: The products getting more expensive and harder to find in Germany
She urged the German government to take advantage of the additional leeway and abolish the value-added tax on vegetables and fruit.
In return, she demanded that manufacturers of sugary drinks be made to pay more as an incentive to reduce the sugar content in their products. "Sugary drinks are a major driver of obesity and diabetes," she said.
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With inflation at a forty-year high and the price of groceries continuing to go up, consumer and social associations are now calling for value-added tax (VAT) on certain foods to be completely abolished.
The social association VdK, the Federation of German Consumer Organizations (VZBV) and the German Diabetes Association have all called on the German government to use new EU regulation to scrap the tax on basic food products.
A reduction on VAT for food had previously been ruled out due to the so-called EU VAT Directive, which dictates that the regular tax rate must be at least 15 percent, and the reduced rate must be at least 5 percent.
But an amendment to the directive that came into force two weeks ago means that is now possible to introduce total tax exemptions for foodstuffs.
READ ALSO: Will Germany reduce VAT to ease the cost of living crisis?
Verena Bentele, president of the social association VdK said that the current cost of living crisis means that low-income earners, pensioners and basic income recipients are struggling to pay their food and electricity bills.
"The VdK is therefore calling for the value-added tax on basic foodstuffs to be drastically reduced to zero percent. The German government must make full use of this option, which now exists for all EU member states," she said.
The Federation of German Consumer Organizations (VZBV) also advocated the abolition of VAT, especially on fruit, vegetables and pulses.
Food expert Christiane Seidel from the VZBV said "This would make it easier for many people to eat healthily and contribute to climate-friendly food production."
Similar demands came from the German Diabetes Society. "A healthy diet should not be a question of money," said executive director Barbara Bitzer said.
READ ALSO: The products getting more expensive and harder to find in Germany
She urged the German government to take advantage of the additional leeway and abolish the value-added tax on vegetables and fruit.
In return, she demanded that manufacturers of sugary drinks be made to pay more as an incentive to reduce the sugar content in their products. "Sugary drinks are a major driver of obesity and diabetes," she said.
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