German trade union chief calls for scrapping of VAT on food
Published on April 4, 2026.
The head of the German Trade Union Confederation (DGT), Yasmin Fahimi, has called for the reduced VAT rate on certain goods to be abolished, particularly for low earners. She suggested that a VAT cut for items such as food and energy could benefit those on lower incomes more than a cut in income tax. However, Fahimi also suggested introducing a higher VAT on luxury goods, which would burden those who could easily shoulder it.
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